TOP Ships Inc. Announces Interest Rate Swap Agreements
June 05 2018 - 4:30PM
TOP Ships Inc. (the “Company”), an international owner and operator
of modern, fuel efficient "ECO" tanker vessels focusing on the
transportation of petroleum products, announced today that it has
entered into an interest rate swap agreement (“IRS”) in order to
hedge its exposure to changes in the interest rate of its Alpha
Bank facility. Furthermore the Company announced today that its
unconsolidated 50% subsidiaries City of Athens Inc (“City of
Athens”) and Eco Nine Inc (“Eco Nine”) have entered into two
separate IRSs in order to hedge their exposure to changes in the
interest rates of their ABN Amro Bank facilities. As a result of
these new IRSs both the Company and its unconsolidated 50%
subsidiaries have now fully hedged their exposure to fluctuations
in interest rates in relation to all post-delivery debt facilities
currently outstanding.
Details of the IRSs are as follows:
Alpha Bank IRS: Under this IRS agreement, the
Company pays Alpha Bank a fixed rate of 2.970% and it receives
variable three month LIBOR. The termination date of the IRS is
February 25, 2025 and its notional amount covers the related Alpha
Bank facility by 100% and follows the repayment schedule of said
facility.
ABN Amro Bank IRS: Under this IRS agreement,
City of Athens pays ABN Amro Bank a fixed rate of 2.745% and it
receives variable three month LIBOR. The termination date of the
IRS is March 10, 2023 and its notional amount covers the related
ABN Amro Bank facility by 100% and follows the repayment schedule
of said facility.
ABN Amro Bank IRS: Under this IRS agreement, Eco
Nine pays ABN Amro Bank a fixed rate of 2.950% and it receives
variable three month LIBOR. The termination date of the IRS is May
16, 2023 and its notional amount covers the related ABN Amro Bank
facility by 100% and follows the repayment schedule of said
facility.
Summary table of the Company’s and its
unconsolidated 50% subsidiaries IRSs currently outstanding:
Counterparty |
Termination Date: |
Hedge as % of loan |
Fixed Interest rate payable |
ABN
Amro Bank |
July
13, 2021 |
100% |
1.4425% |
ABN
Amro Bank |
January 13, 2022 |
100% |
2.0800% |
ABN
Amro Bank |
August
10, 2022 |
100% |
2.1250% |
NORD/LB Bank |
May
17, 2023 |
100% |
2.1900% |
Alpha
Bank |
February 25, 2025 |
100% |
2.9700% |
ABN
Amro Bank |
March
10, 2023 |
100% |
2.7450% |
ABN
Amro Bank |
May
16, 2023 |
100% |
2.9500% |
About TOP Ships Inc.
TOP Ships Inc. is an international ship-owning company.For more
information about TOP Ships Inc., visit its
website: www.topships.org.
Forward-Looking Statements
Matters discussed in this press release may constitute
forward-looking statements. The Private Securities Litigation
Reform Act of 1995 provides safe harbor protections for
forward-looking statements in order to encourage companies to
provide prospective information about their business.
Forward-looking statements include statements concerning plans,
objectives, goals, strategies, future events or performance, and
underlying assumptions and other statements, which are other than
statements of historical facts.
The Company desires to take advantage of the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995
and is including this cautionary statement in connection with this
safe harbor legislation. The words “believe,” “anticipate,”
“intends,” “estimate,” “forecast,” “project,” “plan,” “potential,”
“may,” “should,” “expect” “pending” and similar expressions
identify forward-looking statements. The forward-looking statements
in this press release are based upon various assumptions, many of
which are based, in turn, upon further assumptions, including
without limitation, our management's examination of historical
operating trends, data contained in our records and other data
available from third parties. Although we believe that these
assumptions were reasonable when made, because these assumptions
are inherently subject to significant uncertainties and
contingencies which are difficult or impossible to predict and are
beyond our control, we cannot assure you that we will achieve or
accomplish these expectations, beliefs or projections.
Contacts:Mr. Craig BrelsfordREDCHIPTel: +1 407
571 0902Email: Craig@redchip.com
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