Top Ships has enlisted the help of a Chinese bank to finance two medium-range product and chemical tanker newbuildings under construction in South Korea.
The Evangelos Pistiolis-led shipowner penned a deal with a "major Chinese financier" for up to $60.2m in financing to pay for the two scrubber-fitted, 50,000-dwt ships. The company providing the finance was not named.
The "ultra-high specification" eco vessels are due for delivery from Hyundai Mipo Dockyard (HMD) in February, Top Ships said.
The financing deal comes emerges just days after the the New York-listed company bought out shares of two Pistiolis-controlled private companies Santa Catalina and Santa Monica for $14.4m. The affiliates held the shipbuilding contracts for the two newbuildings, though Top Ships did not reveal how much was left to pay to HMD.
The ships are scheduled to go on charter to Trafigura for three years, with options for another two, once they are delivered. HMD is scheduled to hand over the vessels in February 2020.
Top Ships has not revealed details on the total price tag or the newbuilding MR tankers.
But Seasure Shipbroking-backed VesselsValue estimates the vessels are worth about $41m each. The valuation service's database says the ships are to be named Eco City of Angels and Eco Los Angeles.
10-ship orderbook
They are among 10 newbuilding MR2 tankers that Pistiolis's private company, Central Mare, is slated to receive from HMD and sister yard Hyundai Vinashin Shipyard, according to VesselsValue data. They are part of a newbuilding spree by the Greek shipowner that has involved a total of 19 tankers at the Hyundai Heavy Industries group yards.
Top Ship's fleet of product and chemical tankers currently consists of 10 MR2s, two MR1s and two suezmaxes.
Including the newbuildings, the company's pro forma fleet is valued at nearly $240m.
Monday's financial transaction comes roughly a month after Top Ships said it closed another deal with a major Chinese financier.
That agreement provided the company with $45.8m to exercise purchase options for the 49,700-dwt Stenaweco Energy (built 2014) and Stenaweco Evolution (built 2015), which Top Ships had previously financed through sale-and-leaseback transactions.
Athens-based Top Ships' shares, which trade on the Nasdaq Stock Market, slipped 7% to $0.84% by mid-morning trading Monday after the announced financing deal.
