TOP Ships agrees to sell two newbuild tanker subsidiaries for $14.5 million

TOP Ships said Nov. 12 that it has agreed to sell the companies behind two under-construction MR tanker newbuildings to Rubico Inc. for about $14.5 million. The deal, expected to close by March 31, 2027, would trim the company’s future fleet pipeline while preserving optionality in how the buyer pays.

Why it matters: - The sale removes two future tanker deliveries from TOP Ships’ orderbook and converts part of its long-dated shipbuilding pipeline into cash or preferred equity. - The transaction involves related-party buyer Rubico Inc., so the approval process and fairness opinion are central to how investors may view the deal.

What happened: - TOP Ships entered into an agreement with Rubico Inc. to sell 100% of the issued and outstanding shares of two Marshall Islands companies. - Each special-purpose vehicle is party to a shipbuilding contract for a 47,499 dwt chemical/product oil carrier. - The vessels 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 deal is expected to close by March 31, 2027, subject to customary closing conditions.

The details: - Rubico can pay at closing in cash or, in whole or in part, in Rubico’s Series G Perpetual Convertible Preferred Shares. - A special committee of independent and disinterested directors approved the sale. - The committee obtained a fairness opinion from an independent financial advisor on the consideration to be received. - TOP Ships said the two vessels are among 10 MR newbuilding tankers it has contracted for delivery from the second quarter of 2028 through the fourth quarter of 2029. - The company also said it has agreed to sell two of those 10 MR newbuildings. - TOP Ships disclosed a tanker operating fleet with 857,000 dwt of total capacity, including one 50,000 dwt product/chemical tanker, one 157,000 dwt Suezmax tanker, two 300,000 dwt VLCCs and 50% interests in two 50,000 dwt product tankers through a joint venture. - The company also said it has a share purchase agreement to acquire four shipowning companies tied to four high-specification 50,000 dwt MR newbuildings scheduled for delivery from the second quarter of 2029 through the first quarter of 2030, subject to customary closing conditions and the successful conclusion of the financings by the seller. - TOP Ships said it also owns the megayacht M/Y Para Bellvm and intends to divest it. - The company is incorporated in the Republic of the Marshall Islands and has executive offices in Athens, Greece. - TOP Ships’ common shares trade on the NYSE American under the symbol TOPS. - The company’s in-depth profile is available here.

Between the lines: - Selling the SPVs before delivery may reduce capital needs tied to the newbuildings and give TOP Ships more flexibility as it manages its fleet plan. - The related-party structure makes the independent committee review important for governance credibility. - The option to take preferred shares instead of cash suggests the buyer and seller may be trying to preserve financing flexibility.

What’s next: - The transaction now moves toward closing, which is expected by March 31, 2027. - TOP Ships still faces multiple fleet actions ahead, including delivery of remaining MR newbuildings, the possible acquisition of four additional shipowning companies and the planned sale of M/Y Para Bellvm. - The company said forward-looking items remain subject to risks and customary closing conditions.

The bottom line: - TOP Ships is monetizing two future tanker assets now, while keeping its broader fleet expansion and restructuring plans in motion.