TORM Buys Eight Vessels from TEAM Tankers

March 1, 2021

TORM said on Monday it has entered into an agreement to purchase eight MR product tankers with chemical trading capabilities from TEAM Tankers in a partly share-based transaction.

The deal, which includes a total cash consideration of $82.5 million and the issuance of 5.97 million shares, will increase TORM’s total fleet to 83 vessels.

The eight vessels are all built at the Croatian shipyard Brodotrogir from 2007 through 2012, and six of them have specialized cargo tank configurations and extended tank segregations (IMO 2), allowing for enhanced trading flexibility through chemical trading options, while still being able to work integrated in the existing One TORM operational platform.

The vessels are:

TEAM Amorina (2012-built, MR)
TEAM Allegro (2012-built, MR)
TEAM Corrido (2011-built, MR, IMO 2)
TEAM Cavatina (2010-built, MR, IMO 2)
TEAM Leader (2009-built, MR, IMO 2)
TEAM Discoverer (2008-built, MR, IMO 2)
TEAM Voyager (2008-built, MR, IMO 2)
TEAM Adventurer (2007-built, MR, IMO2)

TORM said it 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 $67 million provided pro rata by the existing syndicate banks (ABN AMRO, Danske Bank, ING, Nordea, Credit Agricole, Société Générale and Swedbank), and the 2007-2008 built vessels will be financed through a new term facility with Hamburg Commercial Bank amounting up to $28 million. The financing is subject to finalization of the documentation.

The vessels are scheduled to be delivered during the second and third quarter of 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 $148 million.