TOP Ships reaches agreement for waivers of covenant non-compliance

By Sara Rosenberg

New York, Aug. 24 - TOP Ships Inc. entered into a preliminary agreement with DVB Bank for waivers of loan covenant breaches until the end of the year, according to a news release.

In addition, the company will restructure the loan relating to the acquisition of product tankers M/T Ionian Wave and M/T Hongbo, part of which was due to be repaid on July 30.

Following this preliminary agreement, the company paid down $7.7 million of the loan using $3.7 million of cash on hand and $4 million in 12-month unsecured bridge loan financing that is repayable in cash or common shares.

The waivers and restructuring are subject to definitive documentation, which is expected to provide for repayment of the remaining amount of the DVB bridge loan in quarterly installments through June 2015 and termination of the pledge to DVB of roughly 12.5 million shares of common stock.

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

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