TOP Ships (TOPS) Stock Rises On Financing News

TOP Ships TOPS Stock News

TOP Ships Inc (NASDAQ: TOPS) is making its way for the top in the market this morning after the company announced financing news. The news led to a high volume frenzy on the stock that’s currently trading on gains of more than 5%. Here’s what’s happening:

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TOPS Stock Is Climbing On Financing News

In a press release issued this morning, TOP Ships announced that it has entered into two new financing agreements. The first of these agreements was signed with a major Chinese Financier.

Under the terms of the agreement, the company will receive $25.6 million. TOPS said that the funds are expected to be used mainly to refinance its facility of M/T Stena Weco Excellence with Nord LB. The new facility will have a term of 10 years.

In the release, the company said that it also intends on entering two more financing agreements with the same financier at similar terms. These agreements will surround the purchase options for the M/Ts Stena Weco Energy and Stena Weco Evolution. TOPS said that both of these acquisitions are expected to take place in the fourth quarter of 2019.

In a statement, Evangelos Pistiolis, President, CEO and Director at TOPS, had the following to offer:

We are very pleased to have concluded this financing with a very high quality financier and look forward to concluding the two additional financings. These new financings will lead to a lower cost of debt for the 3 vessels overall.

This Financing Is A Key Step In The Right Direction

At the end of the day, TOP Ships operates tanker vessels that carry crude oil and gas. This is a very capital intensive business, and in many cases, capital needs occur in order for these types of companies to grow.

Ultimately, TOPS is working on two key acquisitions that will greatly increase its capacity to generate revenue. As such, while debt isn’t fun, it’s necessary and in this case, very good news. All in all, these financing agreements will provide a strong foundation for value appreciation ahead.

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