Rubico expands MR tanker fleet to secure $523 million revenue backlog

Rubico Inc. is pivoting its fleet toward the MR tanker segment, acquiring two newbuildings that push its total potential revenue backlog to $523.1 million. The deal locks in long-term employment with Trafigura through at least 2035, signaling a strategic shift for the Athens-based owner.

The company signed a share purchase agreement with related party Top Ships Inc. to acquire two special purpose vehicles holding contracts for 47,499 dwt chemical/product tankers at Guangzhou Shipyard International. Delivery is scheduled for the fourth quarters of 2028 and 2029. Each vessel carries a seven-year firm charter with Trafigura Maritime Logistics, plus four optional years, representing $150.9 million in potential gross revenue.

The acquisition is supported by a sale and leaseback arrangement with a Chinese leasing company covering 85% of shipbuilding installments. Interest is set at Term SOFR plus 1.80%. Rubico will pay $14.5 million for the shares of the companies, with the option to settle the price in cash or Series G Perpetual Convertible Preferred Shares. The transaction is expected to close by March 31, 2027.

Why it matters

Rubico is fundamentally changing its commercial profile. Currently operating just two Suezmax tankers, the company now has five MR newbuildings on order. This move diversifies its asset base and provides a decade of cash flow visibility that few small-cap owners can match in the current market.

The Trafigura charters are the linchpin of the deal. By securing seven-year firm periods starting as late as 2029, Trafigura is betting on the long-term scarcity of high-specification, fuel-efficient MR tonnage. For other charterers, this deal removes two more eco-spec hulls from the late-decade delivery window, tightening the future supply of modern product carriers.

The financing structure shows the continued dominance of Chinese leasing for Greek owners seeking high leverage. Securing 85% financing at a 1.80% margin allows Rubico to scale its fleet without an immediate, massive cash outlay. However, the corporate guarantees from both Rubico and Top Ships link the two entities closely, a detail that credit analysts and insurers will monitor as the fleet grows.

What to watch

The company expects to close the transaction by March 31, 2027. Attention now turns to the planned divestment of Rubico’s 60-meter megayacht, a non-core asset that the company intends to sell to focus entirely on its tanker business. The timing and price of that sale will determine how much liquidity Rubico retains as it prepares for its heavy 2028-2029 delivery schedule.

Source: GlobeNewswire