TOP Ships Expands Tanker Fleet in Deal Boosting Revenue Backlog to $1.24 Billion

2026-10-08 companies

Athens, Thursday, 8 October 2026.
TOP Ships acquired four ice-class tanker contracts, securing long-term charters with a major oil trader that push its potential gross revenue backlog to $1.24 billion.

TOP Ships Inc. (NYSE American: TOPS) formalized the acquisition through a share purchase agreement executed on October 1, 2026, with the public announcement following on October 7, 2026 [1][4]. The transaction involves purchasing 100% of the issued shares of four special purpose vehicles (SPVs) from Central Mare Inc., an entity affiliated with the family of CEO Evangelos J. Pistiolis [4][7]. This related-party deal was approved by a special committee of independent board members, supported by a fairness opinion from an independent financial advisor to ensure equitable terms [5][7]. The acquisition price for the SPVs is approximately $34.95 million, a figure fixed payable by December 31, 2026, subject to customary closing conditions [1][2].

Revenue Backlog and Charter Specifications

The four acquired vessels are secured with seven-year firm time charters commencing upon delivery, with options to extend for up to three additional years [2][5]. These charters are contracted with a major oil trader, providing long-term visibility into cash flows well into the next decade [3][5]. The total potential gross revenue backlog from these four specific tankers is approximately $316.9 million, assuming the exercise of all available charter extension options [2][7]. This specific acquisition contributes significantly to the company’s broader financial position, representing approximately 25.556 percent of the company’s total potential gross revenue backlog of $1.24 billion [2][5]. Upon closing, the total backlog figure includes existing operating fleet charters and the company’s 50% proportionate share of joint-venture vessel backlog [4][6].

Financing Arrangements and Payment Terms

Financing for the underlying shipbuilding contracts is being arranged by the seller with a major Chinese leasing company, intended to cover approximately 85% of all shipbuilding installments [2][4]. Each vessel construction contract involves aggregate installments of $49.5 million, totaling 198 million across the four vessels [4][7]. The agreement mandates that 100% of net cash proceeds from any pre-closing equity raise or unrelated unsecured borrowing by TOP Ships must be directed toward the $34.95 million purchase price [4][7]. Closing of the transaction remains contingent upon the successful finalization of these lease financing agreements, highlighting the dependency on external capital structures to complete the asset transfer [1][6].

Fleet Expansion and Delivery Timeline

The four ice class 1A MR product tankers are currently under construction at Guangzhou Shipyard International Company Limited, with deliveries scheduled between June 2029 and March 2030 [1][5]. Specific delivery windows are staggered across June 2029, September 2029, December 2029, and March 2030, ensuring a phased entry into the operational fleet [4][7]. Upon completion, this acquisition will expand TOP Ships’ ice class fleet to seven vessels, enhancing trading flexibility in regulated or seasonal markets [1][5]. Concurrently, the company maintains a strategy to divest non-core assets, including the megayacht M/Y Para Bellvm, to focus capital on its core tanker business [4][6].

Sources

Maritime Shipping Fleet Expansion