Nasdaq-listed tanker owner TOP Ships Inc. has entered into an agreement to borrow up to USD 15 million from Family Trading Inc., a company affiliated with its President, Chief Executive Officer and Director, Evangelos J. Pistiolis.
TOP Ships said that the loan may be used to fund only the company’s newbuilding program and working capital relating to the company’s operating vessels.
The loan facility is repayable in cash no later than December 31, 2016, but this date may be extended until December 31, 2017, at the company’s option.
In connection with the agreement, Family Trading will also assume company liabilities of approximately USD 3.8 million that are immediately due in exchange for 13.5 million common shares of the company. Under the deal, TOP Ships has the right to buy back up to 60% of these shares at any time until December 31, 2016.