TOP Ships (TOP) Says Terminating At-The-Market Facility; Shares Jump 19%
TOP Ships (NASDAQ:TOPS) is a mover and shaker out on the Street today, with investors sparking the stock on an almost 20% upturn. Why the excitement? The Greece-based product tanker operator announced this morning that it is terminating an At-The Market facility it has in place with Maxim Group.
Additionally, the company announced that it is in discussions and has received indicative terms from financial institutions for the financing of the M/T’s Eco California, Eco Bel Air and Eco Beverly Hills, which are expected to be delivered in January, April and May 2019 respectively, from Hyundai in South Korea. The high quality of these vessels together with the high quality time charters attached, make them attractive to financiers.
Additionally, the company is close to finalizing an increase in the Family Trading Inc. credit facility, an affiliate of its CEO and controlling shareholder Mr. Evangelos Pistiolis. Also, the company is in discussions with its existing senior lenders as well as with other finance providers with an objective to secure additional liquidity.
As a reminder, the company announced last week that it has entered into a senior debt facility, with a European bank, for $10.1 million to finance in full the remaining five pre-delivery installments of M/T Eco Marina Del Ray (Hull No. 8242) currently under construction at the Hyundai Mipo shipyard in South Korea. This facility together with the previously announced financing transaction with Cargill secures all of the required shipyard installments for taking delivery of the vessel.