TORM Expands its Fleet with Strategic Acquisition of Eight MR Product Tanker Vessels
TORM, a leading shipping company, has recently made a significant move in the maritime industry by entering into an agreement to acquire eight MR product tanker vessels from TEAM Tankers. This strategic acquisition, valued at US$82.5 million in cash and 5.97 million shares, is set to enhance TORM’s operational capacity and trading flexibility, solidifying its position in the market.
The vessels, all built between 2007 and 2012 at the renowned Croatian shipyard Brodotrogir, boast high technical specifications. Notably, six of these vessels have specialized cargo tank configurations and extended tank segregations (IMO 2), enabling them to facilitate chemical trading options while operating within TORM’s existing operational platform. This unique feature enhances the company’s versatility in catering to various market demands.
The acquired vessels are as follows:
- 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, IMO 2)
TORM has secured favorable financing terms for this acquisition, ensuring the sustainability of its investment. The financing structure includes increasing the existing syndicated term facility with a new revolving facility of up to US$67 million, provided by a consortium of banks including ABN AMRO, Danske Bank, ING, Nordea, Credit Agricole, Société Générale, and Swedbank, specifically for the 2009-2012 built vessels. Additionally, a new term facility with Hamburg Commercial Bank, amounting to US$28 million, will finance the 2007-2008 built vessels.
Scheduled for delivery during Q2 and Q3 2021, these vessels will not only expand TORM’s fleet to a total of 83 vessels but also strengthen its market presence significantly. As part of the agreement, TORM will issue shares to TEAM Tankers based on the individual vessel’s value, with provisions for adjustments related to potential capital increases and shareholder distributions.
In terms of market valuation, the acquired vessels are estimated to be worth US$148 million according to broker valuations. This transaction also marks a strategic decision for TEAM Tankers, reducing its fleet size from 24 tankers to 16 tankers, a move aimed at optimizing its operational portfolio.
ABN AMRO played a crucial role in this deal, acting as the financial advisor for TORM and lead coordinator on the financing. Their expertise and strategic guidance have contributed significantly to the successful completion of this transaction.
In summary, TORM’s acquisition of these eight MR product tanker vessels signifies a strategic step forward for the company. With enhanced operational capabilities and increased trading flexibility, TORM is well-positioned to meet the evolving demands of the maritime industry. This move not only strengthens its fleet but also establishes TORM as a key player in the competitive shipping market, showcasing its commitment to growth and innovation in the maritime sector.