Image credit: TORM Tankers

TORM Scoops Up 8 MR Product Tankers from TEAM Tankers

Mike Schuler
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March 1, 2021

TORM Tankers has announced plans to acquire eight medium-range product tankers from TEAM Tankers for approximately $148 in cash and shares.

The eight vessels were all built at Croatia’s Brodotrogir shipyard between 2007 and 2012. Six of the vessels are equipped with specialized cargo tank configurations and extended tank segregations (IMO 2) allowing for flexible trading options.

Under the agreement, TORM will pay a total cash consideration of $82.5 million and issue 5.97 million TORM shares (NASDAQ: TRMD) for a total market value of $148 million.

The vessels will be delivered to TORM during the second and third quarter of this year. In connection with each delivery, TORM will issue the shares to TEAM Tankers in tranches based on each vessels’ relative value.

The transaction will increase TORM’s total fleet to 83 vessels on a fully delivered basis.

TORMS said it obtained “attractive” financing terms with maturities in 2026. The company said the five of the vessels between 2009-2012 will be financed by increasing TORM’s existing Syndicated Term Facility with a new Revolving Facility of up to US $67 million provided pro rata by the existing syndicate banks. For the three vessels built in 2007 and 2008, a new term facility with Hamburg Commercial Bank amounting up to US $28 million will be issued.

The MR product tankers included 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)
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