Note 14 - Subsequent Events

6 Months Ended

Jun. 30, 2019

Notes to Financial Statements

Subsequent Events [Text Block]

14. Subsequent Events

On

July 15

and

August 30, 2019

the Company entered into

sale and leaseback agreements with Oriental Fleet International Company Limited, a non-affiliated party, for M/T Stenaweco Excellence and M/T Stenaweco Energy and M/T Stenaweco Evolution respectively. The sale of the M/T Stenaweco Excellence was concluded on the same date and the Company expects to conclude sale of the last

two

vessels in the

fourth

quarter of

2019.

Following the sale, the Company has bareboat chartered back the M/T Stenaweco Excellence for a period of

ten

years at a bareboat hire rates comprising of financing principal based on straight-line amortization plus interest based on the

three

months Libor plus

3.90%

per day. As part of this transaction, the Company has continuous options, after the

third

year, to buy back the vessels at purchase prices stipulated in the bareboat agreements depending on when the option is exercised and at the end of the

ten

year period it has to buy the vessels back for

$0.001.

The gross proceeds from the sale of the M/T Stenaweco Excellence were

$25,600.

The sale and leaseback agreement for the last

two

vessels will be on similar terms, with the gross proceeds to be finally determined around the sale date.

The abovementioned sale and leaseback transactions contain, customary covenants and event of default clauses, including cross-default provisions and restrictive covenants and performance requirements. The

sale and leaseback agreements with Oriental Fleet International Company Limited will be accounted as a financing transactions, as control will remain with the Company and the vessels will continue to be recorded as assets on the Company’s balance sheet. In addition the Company has the obligation to repurchase the vessels.

On

July 25

and

August 9, 2019

the Company redeemed

3,043

and

1,739

Series E Preferred Shares respectively.