TOP Ships gets waivers from four of five banks on covenant breaches

By Sara Rosenberg

New York, June 5 - TOP Ships Inc. has received waivers on loan covenant non-compliance from four out of five of its banks, representing about 85% of its total debt, and is currently in discussions with the last bank about waivers, according to a news release.

The company failed to comply with its covenants as of March 31.

Waivers already received from HSH Nordbank, Alpha Bank, DVB and Emporiki Bank cover covenant breaches until March, 31 2010.

The company is negotiating with RBS, the last bank, about waivers until March 31, 2010.

Specifically, the HSH Nordbank waivers are in relation to financial covenants, except for adjusted net worth for which a waiver has not been received yet, and asset coverage covenants. As part of the waivers, pricing was increased and the company had to pay an amendment fee.

The Alpha Bank waivers also cover financial and asset coverage covenants, and resulted in increased pricing.

The DVB and Emporiki Bank waivers are still subject to completion of documentation.

As of March 31, the company had total debt under its senior secured credit facilities of $398.3 million, maturing from 2013 through 2019.

TOP Ships is an Athens, Greece-based provider of seaborne crude oil and petroleum products and drybulk transportation services.

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