Copenhagen-headquartered TORM reports that it has entered into an agreement to purchase eight 2007-2012 built MR product tankers from Team Tankers Deep Sea Ltd. for a total cash consideration of $82.5 million and the issuance of 5.97 million shares. The transaction will increase TORM’s total fleet to 83 vessels when the ships are delivered.
The vessels were all built at the Brodotrogir shipyard in Croatia and have high technical specifications with six of the vessels having specialized cargo tank configurations and extended tank segregations (IMO 2), allowing for enhanced trading flexibility through chemical trading options, while still being able to work integrated in the existing One TORM operational platform.
The vessels are:
- Team Amorina (2012-built, MR)
- Team Allegro (2012-built, MR)
- Team Corrido (2011-built, MR, IMO 2)
- Team Cavatina (2010-built, MR, IMO 2)
- Team Leader (2009-built, MR, IMO 2)
- Team Discoverer (2008-built, MR, IMO 2)
- Team Voyager (2008-built, MR, IMO 2)
- Team Adventurer (2007-built, MR, IMO2)
TORM says it has obtained attractive terms on the financing with maturities in 2026. The 2009-2012 built vessels will be financed by increasing TORM’s existing Syndicated term facility with a new revolving facility of up to $67 million provided pro rata by the existing syndicate banks (ABN AMRO, Danske Bank, ING, Nordea, Credit Agricole, Société Générale and Swedbank), and the 2007-2008 built vessels will be financed through a new term facility with Hamburg Commercial Bank amounting up to $28 million.
The financing is subject to finalization of the documentation.
The vessels are scheduled to be delivered during the second and third quarter of 2021, and in connection with each delivery, TORM will issue the shares to Team Tankers in tranches based on the individual vessel’s relative value. The agreed individual share issuances are subject to adjustments related to potential capital increases and shareholder distributions, as applicable.
Based on broker valuations, the market value of the acquired vessels is assessed at $148 million, says TORM.
The deal follows Team Tanker’s sale of its European-based chemical tanker business to the De Poli Tankers group. That sale, announced last November, included seven 8,000 DWT chemical stainless-steel parcel tankers.
Team Tankers delisted from the Oslo Stock Exchange last year.