Pistiolis' Top Ships snaps up nine MR shipbuilding contracts from affiliate

Earlier this month, Riviera reported that Central Mare placed an order for 10 50,000-dwt MR tankers at CSSC’s Guangzhou Shipyard International, marking the Greek owner’s first newbuilding foray in China.

Top Ships has now disclosed an agreement to acquire 100% of the issued and outstanding shares of nine Marshall Islands-based companies (SPVs), which are counterparties to the shipbuilding contracts.

The vessels are scheduled for delivery through 2029. 

The seller has secured time charter employment for all nine vessels with a major oil trader, starting upon delivery for a firm period of seven years, with options to extend for an additional four years. Including these optional periods, the contracts represent a total potential gross revenue backlog of approximately US$679M.

As part of the acquisition, the SPVs will enter definitive sale-and-leaseback financing agreements with two major Chinese leasing companies, including ABC Financial Leasing Co Ltd, or its controlled subsidiaries. The financings are expected to cover 85% of the predelivery installments under the nine shipbuilding contracts, which total US$407M.

Top Ships has agreed to acquire the SPV shares for an aggregate purchase price of around US$41M. Given the related-party nature of the transaction, the deal was approved by a special committee of independent board members.

The US-listed owner currently operates a fleet comprising three MR2 tankers, two VLCCs, and one Suezmax, according to its website.