TOP Ships Announces Time Charter and Loan Agreement

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TOP Ships, an international ship-owning company, announced 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.”

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