Top Ships Inc (NASDAQ: TOPS) is having an incredibly strong start to the trading session this morning, and for good reason. The company announced that it has entered into a timed charter and loan agreement. Of course, this led to excitement among investors, leading to gains in the market. As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. At the moment (10:17), TOPS is trading at $0.66 per share after a gain of $0.28 per share or 74.50% thus far today.
TOPS Gains On Charter And Loan Agreement
As mentioned above, Top Ships is having an incredibly strong day in the market today after announcing that it has entered into a partnership and loan agreement. The agreement surrounds a ship that is expected to be delivered by Hyundai in the third quarter of 2018. At this time, M/T Eco Palm Desert will enter into a time charter employment with Central Ship Chartering Inc, a related party. The agreement will have a term of 3 years. Following the initial 3 year period, the charter has the option to extend the firm employment period by an additional two years. It is expected that gross revenue surrounding the time charter will reach up to $27.5 million. This figure includes optional periods.
On top of the time charter agreement, the company also entered into a bank loan facility with a European bank for the financing of Eco Palm Desert. The agreement will give the company $23.5 million to work with. In a statement, Evangelos Pistolis, President and CEO at TOPS, had the following to offer...
“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 can achieve a certain critical mass in terms of fleet size with an aim to maximize our operational efficiencies and synergies.”
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What We'll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on TOPS. In particular, we're interested in following the news surrounding the vessel that's coming soon and keeping an eye on the operation surrounding the vessels that are currently in use. Nonetheless, we'll continue to follow the story closely and bring the news to you as it breaks!
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