Top Ships has taken delivery of a VLCC and made a slew of deals to help pay for it.
The Evangelos Pistiolis-backed company said that it sold the 50,267-dwt product carriers Eco Los Angeles and Eco City of Angels (both built 2020) to unaffiliated third parties, netting proceeds of $17.5m after paying off the debt on the ships.
TradeWinds reported in October that the vessels were sold to Danish shipowner Norden for $36.5m each.
The ships come with three-year time charters with Trafigura at $17,500 per day, which expire in the first quarter of 2023.
A Norden spokeswoman declined to comment on reports of the purchase.
Top Ships intends to use proceeds from the product tanker sale to fund its newbuilding programme, including the recently-delivered 300,000-dwt Julius Caesar (built 2022).
In addition to the funds from the sale, a Pistiolis company provided Top Ships a $20m unsecured loan to help pay for the cost of building the Julius Caesar and the under-construction 300,000-dwt Legio X Equestris, which is to be delivered later this year.
The company said $9m of that has been drawn.
Pistiolis further provided the company funds through a purchase agreement for up to 7.6m preferred shares that sees the chief executive assume $48m in shipbuilding costs for the VLCC duo.
And he will assume payments related to a $26.7m agreement to buy an ownership interest in the ships.
Each of the preferred shares gives Pistiolis the voting power of 10 common shares, a one-time dividend of 4% and semi-annual dividends of 13.5%.
In addition, Top Ships struck sale-and-leaseback deals for the Julius Caesar and the 157,300-dwt Eco Oceano CA, which will also be delivered this year.
The Julius Caesar deal was financed for $54m, while the suezmax Eco Oceano CA fetched $48.4m.
Top Ships will make consecutive quarterly payments of $700,000 on both deals, for 32 months for the Julius Caesar and 40 months for the Eco Oceano CA. Both have balloon payments and both come with interest rates of the 3-month US dollar Libor.
The firm said the Julius Caesar is worth $102m and the Eco Oceano CA $71.3m. The Legio X Equestris is valued at $102m.
Both VLCCs will go on charter to Trafigura for three years with two one-year extension options.
They were ordered at Hyundai Heavy Industries, while the Eco Oceano CA is a product of Hyundai Samho Heavy Industries.
Eric Priante Martin contributed to this story.
