TOP Ships agrees to sell two tanker-building units for $14.5 million

TOP Ships has agreed to sell two ship-owning subsidiaries tied to newbuilding tanker contracts to Rubico Inc. for about $14.5 million. The deal, pending customary closing conditions, is expected to close by March 31, 2027 and could help the company reshape its vessel portfolio.

Why it matters: - The deal gives TOP Ships cash value from two future tanker projects before delivery. - The sale reduces the company’s direct exposure to two MR newbuilds scheduled for 2028 and 2029. - The transaction also shows how TOP Ships is recycling capital while it pursues other fleet moves.

What happened: - TOP Ships agreed to sell 100% of the issued and outstanding shares of two Marshall Islands companies to Rubico Inc., a related party. - Each special purpose vehicle is party to a shipbuilding contract for a 47,499 dwt chemical/product oil carrier. - The two newbuilding MR tankers are scheduled for delivery in the fourth quarter of 2028 and the fourth quarter of 2029. - The aggregate selling price is about $14.5 million. - TOP Ships said the transaction is expected to close by March 31, 2027, subject to customary closing conditions.

The details: - Rubico Inc. can pay the purchase price in cash at closing. - Rubico Inc. can also elect to pay all or part of the price in Series G Perpetual Convertible Preferred Shares. - A special committee of independent and disinterested board members approved the sale. - The special committee obtained a fairness opinion from an independent financial advisor on the consideration to be received. - TOP Ships is an international owner and operator of modern, fuel-efficient ECO tanker vessels.

Between the lines: - The use of a related-party buyer raises governance sensitivity, which helps explain the independent committee review and fairness opinion. - TOP Ships also disclosed a broader fleet strategy that includes newbuilding tanker contracts, additional acquisition plans and an intended divestiture of the megayacht M/Y Para Bellvm. - The company appears to be adjusting its asset mix ahead of multiple vessel deliveries over the next several years.

What's next: - TOP Ships will work toward closing the sale by March 31, 2027. - The company’s remaining newbuilding MR tankers are scheduled for delivery from the second quarter of 2028 through the fourth quarter of 2029. - TOP Ships also has a pending share purchase agreement to acquire four shipowning companies, subject to customary closing conditions and the successful conclusion of the seller’s financings. - The company still plans to divest M/Y Para Bellvm.

The bottom line: - TOP Ships is monetizing part of its future tanker pipeline now, while keeping other fleet expansion plans in motion.