TORM has entered into an agreement to purchase eight 2007-2012-built MR product tanker vessels from TEAM Tankers for a total cash consideration of US$82.5M and the issuance of 5.97M shares
The transaction will increase TORM’s fleet to 83 vessels on a fully delivered basis.
The vessels were all built at the Croatian shipyard Brodotrogir and have high technical specifications, with six of the vessels having specialised cargo tank configurations and extended tank segregations (IMO 2), allowing for enhanced trading flexibility through chemical trading options, while still being able to work in the existing
One TORM operational platform. The vessels are:
TORM said it has obtained attractive terms on the financing with maturities in 2026. The 2009-2012 built vessels will be financed by increasing TORM’s existing syndicated term facility with a new revolving facility of up to US$67M provided pro rata by the existing syndicate banks (ABN AMRO, Danske Bank, ING, Nordea, Credit Agricole, Société Générale and Swedbank).
The 2007-2008 built vessels will be financed through a new term facility with Hamburg Commercial Bank (formerly HSH Nordbank) amounting up to US$28M. At its pre-2008 peak, HSH Nordbank was the largest ship finance bank in the world.
The vessels are scheduled to be delivered during Q2 and Q3 2021, and in connection with each delivery, TORM will issue the shares to TEAM Tankers in tranches based on the individual vessel’s relative value. The agreed individual share issuances are subject to adjustments related to potential capital increases and shareholder distributions, as applicable.
Based on broker valuations, the market value of the acquired vessels is assessed at US$148M. The transaction reduces the TEAM Tankers’ fleet from 24 tankers to 16 tankers. In 2020, TEAM tankers sold 11 tankers out of the fleet.
ABN AMRO has acted as financial advisor for TORM on the transaction and lead co-ordinator on the financing.
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