Rubico Inc. (NASDAQ:RUBI) announced an agreement to acquire two newbuilding medium-range (MR) tankers through a $14.5 million transaction with related party Top Ships Inc., increasing its potential gross revenue backlog by approximately 40% to $523.1 million, including optional charter extensions.
The acquisition involves purchasing two companies holding shipbuilding contracts for 47,499 deadweight tonne (dwt) chemical and product oil tankers, scheduled for delivery in the fourth quarters of 2028 and 2029.
Seven-Year Charter Agreements Secured with Trafigura
Both vessels have secured seven-year time charter agreements with Trafigura Maritime Logistics Pte Ltd, commencing upon delivery.
The contracts include options for four additional years, bringing their combined potential gross revenue backlog to approximately $150.9 million, including extension periods.
Following completion of the acquisition, Rubico’s five newbuilding MR tankers would represent approximately $377.1 million in potential gross contracted revenue.
Including its existing operating fleet, the company’s total potential gross revenue backlog would reach approximately $523.1 million.
Acquisition Includes Sale and Leaseback Financing
Each vessel-owning company has arranged sale and leaseback financing covering 85% of its shipbuilding contract instalments.
The financing carries an interest rate of Term SOFR plus 1.80%, with quarterly repayments of $0.5 million per vessel over 10 years following delivery and a final balloon payment of $18.2 million per vessel.
The initial $6.8 million shipbuilding instalment for each tanker has already been paid.
Rubico will pay $14.5 million for the two companies, either in cash or partly or entirely through Series G Perpetual Convertible Preferred Shares.
The transaction is expected to close by March 31, 2027, subject to customary conditions.
A special committee of independent directors approved the acquisition after obtaining an independent fairness opinion.
Fleet Expansion and Contracted Revenue Outlook
Rubico President and Chief Executive Officer Kalliopi Ornithopoulou said the acquisition aligns with the company’s strategy of expanding its tanker operations and contracted revenue base.
Rubico currently operates two 157,000 dwt Suezmax tankers and owns three additional MR tanker newbuildings scheduled for delivery during 2029.
The company also has a 60-metre megayacht under construction, scheduled for delivery in the second quarter of 2027, which it intends to sell.
Completion of the proposed acquisition would increase Rubico’s MR tanker newbuilding portfolio to five vessels, with the additional charter agreements extending its contracted revenue coverage into the next decade.