TOP Ships Inc. Announces Time Charter and Loan Agreement
September 13 2017 - 4:30PM
TOP Ships Inc. (Nasdaq:TOPS), an international ship-owning company
(the “Company”), announced today that upon its delivery from
Hyundai in the third quarter of 2018, M/T Eco Palm Desert will
enter into time charter employment with Central Ship Chartering
Inc, a related party, for a firm duration of three years. The
charterer has the option to extend the firm employment period by
two additional years. The Company expects a total gross revenue
backlog associated with this time charter of up to $27.5 million
including the optional periods.
Following the signing of the abovementioned time
charter party, the Company’s charter coverage is as follows:
Year |
|
Operating fleet |
|
Operating fleet including vessels partly owned through joint
ventures |
2017 |
|
100% |
|
100% |
2018 |
|
94% |
|
95% |
2019 |
|
67% |
|
73% |
2020 |
|
32% |
|
45% |
2021 |
|
19% |
|
33% |
The above charter coverage percentages are
calculated as the ratio of number of days vessels are expected to
be hired pursuant to the fixed period of existing time charters
divided by number of days vessels are available for chartering
during the respective calendar years assuming no off-hire days.
The company also announced that it has entered
into a $23.5m bank loan facility with a European bank for the
financing of Eco Palm Desert.
Following the signing of the abovementioned
loan, the remaining contractual commitments for the acquisition of
the Company’s fleet, net of expected debt drawdowns, are reduced to
$32.1 million, pursuant to newbuilding agreements for M/T Eco
Holmby Hills, M/T Eco Palm Springs and M/T Eco Palm Desert.
Evangelos Pistiolis, President and CEO of the Company, stated:
“The total gross revenue backlog for the fixed charter period of
all of the Company’s operating fleet stands at about $106 million
and when adding the 50% of our joint venture vessels it increases
to about $122 million, with cashflow visibility reaching into 2021.
Our business strategy continues to be focused on further expanding
our fleet as it is important that we achieve a certain critical
mass in terms of fleet size with an aim to maximize our operational
efficiencies and synergies.”
About TOP Ships Inc.
TOP Ships Inc. is an international ship-owning
company.
For more information about TOP Ships Inc., visit
its website: www.topships.org.
Forward-Looking Statements
Matters discussed in this press release may
constitute forward-looking statements. The Private Securities
Litigation Reform Act of 1995 provides safe harbor protections for
forward-looking statements in order to encourage companies to
provide prospective information about their business.
Forward-looking statements include statements concerning plans,
objectives, goals, strategies, future events or performance, and
underlying assumptions and other statements, which are other than
statements of historical facts.
The Company desires to take advantage of the
safe harbor provisions of the Private Securities Litigation Reform
Act of 1995 and is including this cautionary statement in
connection with this safe harbor legislation. The words “believe,”
“anticipate,” “intends,” “estimate,” “forecast,” “project,” “plan,”
“potential,” “may,” “should,” “expect” “pending” and similar
expressions identify forward-looking statements. The
forward-looking statements in this press release are based upon
various assumptions, many of which are based, in turn, upon further
assumptions, including without limitation, our management's
examination of historical operating trends, data contained in our
records and other data available from third parties. Although we
believe that these assumptions were reasonable when made, because
these assumptions are inherently subject to significant
uncertainties and contingencies which are difficult or impossible
to predict and are beyond our control, we cannot assure you that we
will achieve or accomplish these expectations, beliefs or
projections.
Contacts:
Alexandros
TsirikosChief Financial OfficerTOP Ships Inc.1, Vassilissis Sofias
Str. & Meg. Alexandrou Str.151 24, Maroussi, GreeceTel: +30 210
812 8180Email: atsirikos@topships.org |
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