Toro Corp. (NASDAQ: TORO) has entered into a $60 million revolving credit facility with a leading European financial institution. The five‑year facility carries a term SOFR plus margin interest rate and is secured by a first‑priority mortgage over four of the company’s vessels.
The credit line is intended for general corporate purposes, providing Toro with additional working capital and flexibility to support its fleet operations and potential future acquisitions. The facility is structured to backstop the company’s debt‑free balance sheet while giving the company headroom to fund fleet renewal investments without diluting shareholders or relying on short‑term market financing.
Toro’s current fleet consists of two LPG carriers and one MR tanker, and the four vessels that serve as collateral are among the company’s most valuable assets. The facility’s collateral structure and the company’s strong liquidity—its current ratio stands at 5.94 and cash exceeds debt—give lenders confidence in Toro’s ability to meet its obligations.
The financing move follows Toro’s transition from a small LPG‑focused fleet to a more diversified product tanker mix, a strategy that has required significant capital outlays. By securing this revolving line, Toro can maintain operational momentum and pursue growth opportunities while preserving its solid balance sheet.
Market reaction to the announcement was positive; Toro’s shares rose 1.10% to $3.67, reflecting investor confidence in the company’s enhanced liquidity and financial flexibility.
The facility underscores Toro’s commitment to prudent capital management and positions the company to capitalize on favorable market conditions in the capital‑intensive shipping industry.
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