Toro Corp. announces provision of a senior term loan to Castor Maritime

Toro (TORO) announces the agreement to provide a $100 million senior term loan facility to Castor Maritime (CTRM). The Term Loan is secured by 10 vessels wholly owned by Castor which are currently valued at approximately $235 million based on third party valuations, has a tenor of 5 years and bears interest at SOFR plus 1.80% per annum. Furthermore, Toro announces that on December 12, 2024, has agreed to increase by 50,000 preferred shares its investment in Castor’s 5.00% Series D cumulative perpetual convertible preferred shares, par value $0.001 per share, for an aggregate consideration of $50 million in cash. As a result of this transaction Toro will hold 100,000 Series D Preferred Shares in total. The terms of the Term Loan and Series D Preferred Shares were approved by the independent and disinterested members of the Boards of Toro and Castor, respectively, following the negotiation and recommendation by special committees of the independent and disinterested directors of the Boards of Toro and Castor, respectively. The special committee was advised by an independent financial advisor in its negotiation and recommendation of the above-mentioned transactions.