TORM Purchases 8 MR Product Tankers From Team Tankers In Partly Share-Based Transaction
TEAM has entered into an agreement to sell eight 2007-2012 built MR product tanker vessels to TORM for a total cash price of USD 82.5m and the issuance of 5.97 million TORM shares. The transaction will increase TORM’s total fleet to 83 vessels on fully delivered basis.
The vessels are all built at the Croatian shipyard Brodotrogir 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 integrated 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)
The 2009-2012 built vessels will be financed by increasing TORM’s existing Syndicated Term Facility with a new Revolving Facility of up to USD 67m 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 to up to USD 28m. TORM has obtained attractive terms on financing with maturities in 2026. 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 shares to TEAM corresponding to the individual vessel’s relative value. The individual share issuance amounts are subject to adjustments related to capital increases and shareholder distributions, as applicable.