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Note 9 - Debt | 6 Months Ended
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Jun. 30, 2014
Debt Disclosure [Abstract] |
Debt Disclosure [Text Block] |
9. | Debt:
As of December 31, 2013 the Company had no indebtedness and hence no requirements stemming from loan covenants. As of June 30, 2014, the Company’s outstanding balance under its credit facility with Alpha Bank of Greece is $20,125. The credit facility was entered into for the financing of the vessel M/T Eships Taweelah and is repayable in 20 consecutive semi-annual installments of $706 each, commending November 28, 2014 plus a balloon installment of $6,005 payable together with the last installment in May 2024. The facility is presented in the accompanying unaudited interim condensed consolidated balance sheets as follows:
|  | December 31, 2013 |  |  | June 30, 2014 |
Current portion of long term debt (net of unamortized financing fees of $26) |  |  | - |  |  |  | 1,386 |
Long term debt (net of unamortized financing fees of $164) |  |  | - |  |  |  | 18,549 |
Total |  |  | - |  |  |  | 19,935 |
The facility bears interest at LIBOR plus a margin of 3.75%. The applicable one-month LIBOR as of June 30, 2014 was 0.15%. The facility contains various covenants, including (i) an asset cover ratio of 125%, (ii) a ratio of EBITDA to net interest expenses of not less than 2:1, (iii) a ratio of total debt to market-adjusted total assets of not more than 70% and (iv) minimum free liquidity of $1,000. Additionally, the facility contains restrictions on the shipowning company incurring further indebtedness or guarantees and restrictions on the payment of dividends. As of June 30 2014, the Company was in compliance with the asset maintenance and minimum free liquidity covenants. Under the loan agreement, covenant testing for the other above mentioned covenants will commence from December 31, 2014. The facility is secured as follows:
· | First priority mortgage over M/T Eships Taweelah;
· | Assignment of insurance and earnings of the mortgaged vessel;
· | Specific assignment of any time charter with duration of more than 12 months;
· | Corporate guarantee of Top Ships Inc.;
· | Pledge of the shares of the shipowning subsidiary;
· | Pledge over the earnings account of the vessel.
Interest Expense: Interest expense for the six months ended June 30, 2013 and 2014 amounted to $2,923 and $24 respectively and is included in Interest and finance costs in the accompanying unaudited interim condensed consolidated statements of comprehensive income/(loss) (Note 15). Financing Costs: The additions in deferred financing costs amounted to $0 and $191 during the six months ended June 30, 2013 and 2014 respectively. For 2014, this amount relates to a non-recurring arrangement fee of $151 paid to Alpha Bank under the respective facility and another non-recurring financing fee of $40 paid to CSM as per the provisions of the New Letter Agreement between the latter and the Company (see Note 5). Scheduled Principal Repayments: The annual principal payments required to be made after June 30, 2014, are as follows:
Years |  | Amount |
June 30, 2015 |  |  | 1,412 |
June 30, 2016 |  |  | 1,412 |
June 30, 2017 |  |  | 1,412 |
June 30, 2018 |  |  | 1,412 |
June 30, 2019 |  |  | 1,412 |
June 30, 2020 and thereafter |  |  | 13,065 |
Less: Unamortized financing fees |  |  | (190 | )
Total |  |  | 19,935 |

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- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 19, 20, 22 -Article 5 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.19,20,22) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 + Details
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