Top Ships secures $92.5m sale and leaseback deal for newbuild pair

Top Ships secures $92.5m sale and leaseback deal for newbuild pair

Greek owner Top Ships has obtained non-binding credit committee approval from a major Chinese leasing company for up to $92.5m via sale and leaseback agreements for two of its suezmax newbuilding vessels currently under construction at Hyundai Samho Heavy Industries in South Korea.

The company is currently negotiating the final terms of the financing agreements.

Under the proposed terms the vessels will be sold when they are delivered from the shipyard, currently scheduled for April and May of 2019 respectively. The leasing period is seven years and the company has continuous options to buy back the vessels after the three year anniversary of each vessel’s delivery.

“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 which are the assets with the most capital requirements in our orderbook, and entry into the Chinese financing market,” said Evangelos Pistiolis, president and CEO of Top Ships.

Jason Jiang

Jason worked for a number of logistics firms following his English degree, then switched this hands-on experience to writing and has since become one the most prolific writers on the diverse China logistics industry writing for a host of titles including Supply Chain Asia, Cargo Facts and Air Cargo Week. Jason’s access to the biggest shippers with business in China has proved an invaluable source of exclusives.

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