TOPT gapping up 21% this morning
TOP Tankers Announces Sale and Leaseback of Thirteen Vessels and Distribution
of $7.50 Per Share Special Dividend
ATHENS, Greece, March 13 /PRNewswire-FirstCall/ -- TOP Tankers Inc
(Nasdaq: TOPT) announced today the sale of thirteen vessels and the immediate
leaseback to the Company for a period of five to seven years. The lease is a
bareboat charter, with TOP Tankers continuing to operate and commercially
manage the vessels. The table below described the vessels involved and the
length of the relevant leases:
Vessel Name Dwt Type Built Period
1 Timeless 154,970 Suezmax 1991 5 years
2 Flawless 154,970 Suezmax 1991 5 years
3 Priceless 154,970 Suezmax 1991 5 years
4 Stopless 154,970 Suezmax 1991 5 years
5 Faultless 154,970 Suezmax 1992 7 years
6 Noiseless 149,554 Suezmax 1992 7 years
7 Stainless 149,599 Suezmax 1992 7 years
8 Limitless 136,055 Suezmax 1993 7 years
9 Endless 135,915 Suezmax 1992 7 years
10 Spotless 47,094 Handymax 1991 5 years
11 Doubtless 47,076 Handymax 1991 5 years
12 Vanguard 47,084 Handymax 1992 5 years
13 Faithful 45,720 Handymax 1992 5 years
The aggregate sale price of the thirteen vessels is approximately
$550 million, and the net cash proceeds from this transaction (after repayment
of corresponding vessel loans and other expenses) are expected to be
approximately $240 million. The Company expects to generate a book gain of
approximately $90 million, which will be amortized over the respective lease
period. The leases of the vessels following their sale are expected to
qualify as operating leases under U.S. GAAP.
"Evangelos J. Pistiolis, President and CEO of TOP Tankers Inc., commented:
"Since our IPO in July 2004, we have committed to grow our company and create
significant value for our shareholders. By entering into this transaction, we
capitalize on prevailing high second hand tanker values, while maintaining
full commercial and operational control of all our vessels.
"In addition, by distributing the majority of the net cash generated by
this transaction in the form of a special dividend, we are generating a
substantial return for our shareholders. We intend to continue to pursue
similar transactions, whether involving acquisitions, redeployments of
existing assets or dispositions, that increase shareholder value.
"After completion of the sale, TOP tankers will remain one of the
largest double-hull Suezmax and Handymax operators in the world, with
27 vessels under management. Nine vessels will be fully owned, with an
additional 18 tankers chartered-in and fully controlled."
Distribution of Special Dividend
The Company has declared a special dividend of $5.00 per share, payable on
March 27, 2006 to shareholders of record as of March 22, 2006. The Company
expects to declare an additional special dividend in the amount of $2.50. The
declaration of that dividend is expected to be announced towards the end of
March 2006.
