Rubico Inc. Announces Successful Completion of Fleet Refinancing

Rhea-AI Summary

Rubico (NASDAQ:RUBI) announced on Nov 12, 2025 that it closed sale-and-leaseback financings for its two 157,000 dwt Suezmax tankers, M/T Eco West Coast and M/T Eco Malibu, with a major Chinese financier.

Key terms: gross cash released of about $10.4 million after repayments and fees; two SLBs of $42.0 million each; 10-year bareboat charters with 120 monthly installments of $0.18M (Eco West Coast) and $0.19M (Eco Malibu); purchase obligations of $20.0M and $19.0M at charter expiry; interest at 3-month SOFR plus margins of 1.95% and 2.10%.

The company noted fleet leverage post-refinancing near 50%. Rubico and parent Top Ships provided guarantees; the agreements include customary covenants, cross-default provisions, and minimum liquidity requirements of $0.40M and $0.50M.

Positive

• Gross cash released of about $10.4M
• Two $42.0M SLBs secured for each Suezmax tanker
• 10-year bareboat charters provide long-term financing stability
• Fleet leverage reported at about 50% post-refinancing

Negative

• Combined purchase obligations of $39.0M at charter expiries
• Parent Top Ships provided guarantees, increasing contingent liabilities
• Loan margins of 1.95%–2.10% over 3-month SOFR add interest cost exposure
• SLBs include cross-default and restrictive covenants with liquidity floors

Insights

Maritime finance analyst

Sale-and-leaseback raised immediate liquidity of $10.4 million while replacing prior debt with long‑dated charters and buyback obligations.

The transaction converts two 157,000 dwt Suezmax vessels into long‑term financing lines: two SLBs of $42.0 million each against Eco West Coast and Eco Malibu, with ten‑year bareboat charters paid by 120 monthly installments of $0.18 million and $0.19 million respectively and final purchase obligations of $20.0 million and $19.0 million. The stated gross cash release after repayments and a short bridge loan was about $10.4 million, and the company reports fleet leverage at about 50%, below the covenant cap of 85%.

The financing lowers near‑term cash‑flow volatility by replacing prior debt with structured lease installments tied to SOFR plus margins of 1.95% and 2.1%. Risks remain: cross‑default and restrictive covenants apply, and minimum liquidity covenants require maintaining $0.40 million and $0.50 million for the two SLBs. The parent company and vessel owners provided guarantees, which shifts contingent obligations onto the group.

Watch for covenant compliance and monthly bareboat cash outflows over the next 12 months, monitoring the early buyback option after the first year and the scheduled purchase obligations at ten years on Nov. 12, 2025 transaction timing. The most immediate, monitorable items are the company's actual post‑closing liquid funds level versus the $0.40–$0.50 million requirements and execution of the buyback option windows beginning after the first year.

ATHENS, Greece, Nov. 12, 2025 (GLOBE NEWSWIRE) -- Rubico Inc. (the “Company” or “Rubico”) (NASDAQ:RUBI), an international owner and operator of modern, fuel efficient “ECO” tanker vessels, announced today that it has closed the previously announced sale and leaseback financing agreements (the “SLBs” or “Financing Agreements”) with a major Chinese financier for the refinancing of its two 157,000 dwt Suezmax tankers, the M/Ts Eco West Coast and Eco Malibu.

The gross proceeds before fees and related expenses but after repayment of previous debt and a 5-day short term related party bridge loan that facilitated the transaction amounted to about $10.4 million.

Kalliopi Ornithopoulou, the President, Chief Executive Officer and Director of the Company, said:

“The amount of cash released from the concluded deals is significantly in excess of our current market capitalization. Taking into account the new debt levels of our fleet following the refinancings, the leverage of the fleet remains at a very conservative level of about 50%.”

Eco West Coast Refinancing

The SLB of M/T Eco West Coast is for an amount of $42.0 million. Pursuant to the SLB terms, we will bareboat charter back the vessel for a period of ten years at bareboat hire rates comprising of 120 consecutive monthly installments of $0.18 million along with a purchase obligation of $20.0 million at the expiry of the bareboat charter, bearing an interest rate of 3-month term SOFR plus a margin of 1.95% per annum. Under the SLB terms, we will have the option to buy back the vessel following the end of the first year at purchase prices stipulated in the bareboat charter agreement depending on when the option is exercised.

Eco Malibu Refinancing

The SLB of M/T Malibu is for an amount of $42.0 million. Pursuant to the SLB terms, we will bareboat charter back the vessel for a period of ten years at bareboat hire rates comprising of 120 consecutive monthly installments of $0.19 million along with a purchase obligation of $19.0 million at the expiry of the bareboat charter, bearing an interest rate of 3-month term SOFR plus a margin of 2.1% per annum. Under the SLB terms, we will have the option to buy back the vessel following the end of the first year at purchase prices stipulated in the bareboat charter agreement depending on when the option is exercised.

In connection with the Financing Agreements, Rubico Inc. and Rubico Inc.’s parent company, Top Ships Inc, each provided a guarantee of the obligations of our vessel-owning subsidiaries under the respective SLB. The Financing Agreements, and the relevant appurtenant guarantees, contain customary covenants and event of default clauses, including cross-default provisions and restrictive covenants and performance requirements including that we maintain a leverage ratio (as defined in the relevant corporate guarantees) of no more than 85% and minimum liquid funds (as defined in the relevant corporate guarantees) of $0.50 million in connection with the SLB of M/T Eco Malibu and $0.40 million in connection with the SLB of M/T Eco West Coast.

About the Company

Rubico Inc. is a global provider of shipping transportation services specializing in the ownership of vessels. The Company is an international owner and operator of two modern, fuel efficient, eco 157,000 dwt Suezmax tankers.

The Company is incorporated under the laws of the Republic of the Marshall Islands and has executive offices in Athens, Greece. The Company's common shares trade on the Nasdaq Capital Market under the symbol “RUBI”.

Please visit the Company’s website at: https://rubicoinc.com/

For further information please contact:
Nikolaos Papastratis
Chief Financial Officer
Rubico Inc.
Tel: +30 210 812 8107
Email: npapastratis@rubicoinc.com

Forward-Looking Statements

Matters discussed in this press release may constitute forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides safe harbor protections for forward-looking statements in order to encourage companies to provide prospective information about their business. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts.

The Company desires to take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and is including this cautionary statement in connection with this safe harbor legislation. The words “believe,” “anticipate,” “intends,” “estimate,” “forecast,” “project,” “plan,” “potential,” “may,” “should,” “expect” “pending” and similar expressions identify forward-looking statements. The forward-looking statements in this press release are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, our management's examination of historical operating trends, data contained in our records and other data available from third parties. Although we believe that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control, we cannot assure you that we will achieve or accomplish these expectations, beliefs or projections. Please see the Company’s filings with the Securities and Exchange Commission for a more complete discussion of these and other risks and uncertainties. The information set forth herein speaks only as of the date hereof, and the Company disclaims any intention or obligation to update any forward-looking statements as a result of developments occurring after the date of this communication.

FAQ

What did Rubico (RUBI) announce on November 12, 2025 about fleet refinancing?

Rubico closed sale-and-leaseback financings for two Suezmax tankers, raising about $10.4M net and placing two $42.0M SLBs.

What are the payment and buyback terms for RUBI's Eco West Coast refinancing?

Eco West Coast is under a $42.0M SLB with 120 monthly installments of $0.18M and a $20.0M purchase obligation at expiry.

What are the payment and buyback terms for RUBI's Eco Malibu refinancing?

Eco Malibu is under a $42.0M SLB with 120 monthly installments of $0.19M and a $19.0M purchase obligation at expiry.

How does the refinancing affect Rubico's fleet leverage and liquidity requirements (RUBI)?

The company reported fleet leverage near 50% post-refinancing and covenant minimum liquid funds of $0.40M and $0.50M for each SLB.

What interest rates apply to Rubico's new SLBs for RUBI vessels?

Both SLBs bear interest at 3-month SOFR plus margins of 1.95% (Eco West Coast) and 2.10% (Eco Malibu).

Did Rubico or its parent provide guarantees for the RUBI financings?

Yes; Rubico and parent Top Ships provided guarantees for the obligations of the vessel-owning subsidiaries under the SLBs.