Top Ships enters $92.5m leaseback deal

Top Ships plans to fund most of a four-newbuild purchase through a multimillion-dollar leaseback deal.

The Evangelos Pistiolis-led company has entered into a credit agreement with a major Chinese leasing company for up to $92.5m through sale and lease-back of two suezmax newbuildings.

Under the agreement, the ships will be sold upon delivery set for April and May of next year under seven-year financing terms.

Top Ships has continuous options to rebuy the vessels, being constructed at South Korea's Hyundai Samho Heavy Industries, from three years after delivery up to the agreements expire.

The ships are scheduled to enter into three-year charters with an oil major at $25,000 per vessel per day.

Successful completion of this transaction would mark two very important milestones; significant reduction of our unfunded capital requirements, as this funding would cover about 84% of the remaining yard installments required in order to take delivery of the Suezmax vessels ... and entry into the Chinese financing market, chief executive Evangelos Pistiolis said.

The two vessels in the....

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