TOP Ships to Sell Its Current Fleet to Acquire New Vessels
TOP Ships Inc. an international maritime shipping company that provides transportation services for petroleum products and dry bulk commodities, announced that it has entered into three stock purchase agreements with an affiliate of the AMCI Poseidon investment fund by which the company has agreed to sell the six shipowning subsidiaries which own the company's six vessels (Five Handymax product tankers and one dry bulk carrier), for an aggregate cash consideration of approximately $173 million less approximately $135 million in debt and swap obligations of the company that will be assumed by the buyers.
These stock purchase agreements are subject to approval of the transactions by the company's shareholders, consents from the company's bank lenders and charterers, if required, and other customary closing conditions. The transactions will be considered at the company's next annual general meeting of shareholders, expected to take place at the end of September, 2013. The parties anticipate that the transactions will close in late October 2013.
The company said it intends to use the net proceeds of the sale to pay down existing liabilities on its balance sheet and, together with future borrowings, to initiate a program of acquisition of new vessels.