TOP Ships Inc. Announces Acquisition of Two Scrubber Fitted ECO MR Tanker Newbuildings With Time Charters

TOP Ships Inc., an international owner and operator of modern, fuel efficient “ECO” tanker vessels, announced today that it has acquired 100% of the issued and outstanding shares of Santa Catalina Inc. and Santa Monica Inc., which are Marshall Islands companies that have entered into new building contracts for two ultra-high specification scrubber-fitted 50,000 dwt Medium Range (“MR”) product/chemical tankers under construction at Hyundai Mipo Dockyard Co., Ltd. in South Korea and scheduled for delivery during February 2020.

The Company has acquired the shares of both companies from an entity affiliated with the Company’s Chief Executive Officer, for an aggregate purchase price of $14.35 million. Following their delivery, the vessels will enter into time charters with Trafigura Maritime Logistics Pte Ltd. (“Trafigura”) for a firm duration of three years, with charterer’s option to extend for two additional years at. The Company is in the process of concluding financing agreements for both vessels.

The acquisitions were approved by a special committee composed of independent members of the Company’s board of directors, (the “Transaction Committee”). The Transaction Committee obtained a fairness opinion relating to the consideration paid in this transaction from an independent financial advisor.
Evangelos Pistiolis, President and CEO of the Company, stated: “The new additions to our fleet are in line with our strategy of always operating latest technology ships and increase our gross revenue backlog for the fixed charter period of our vessels by $38.3 million, which as of June 30, 2019 stood at $165.3 million. Furthermore the quality of the charterer evidences the quality of the acquired vessels.”