[sheet: Cover & Summary]

Field	Value
Document Title	Funds Flow Memorandum — RSA Closing
Date Prepared	June 29, 2023
Closing / Effective Date	June 30, 2023
Prepared By	Amy Chesterton, Lead Associate, Calderwood & Harkness LLP
Reviewed By	Nathaniel Bower, Responsible Partner, Calderwood & Harkness LLP
Matter Number	1044-00003
Client	Thalassa Shipping & Logistics SA / Thalassa Americas Inc.
Transaction	Restructuring Support Agreement — Closing Transactions
RSA Execution Date	March 14, 2023
RSA Outside Date / Closing Date	June 30, 2023
Reference Documents	Restructuring Support Agreement (Mar. 14, 2023); Amendment No. 1 to Senior Secured Credit Agreement (May 15, 2023); New Second-Lien Note Purchase Agreement (May 18, 2023); Equity Subscription Agreement — KFO Holdings SA (May 22, 2023); Amended and Restated Intercompany Promissory Note (May 25, 2023); Consent and Waiver Letter — Garrison Trust Company (Mar. 20, 2023)

SUMMARY OF FUND MOVEMENTS

Total Cash Inflows (Sources)	$38,200,000
Total Cash Outflows (Uses)	$38,200,000
Net Cash Movement	$0 (balanced)
Non-Cash / PIK Items (Memo Only)	$5,400,000 (Amendment Fee — PIK); $60,000,000 (New Second-Lien Notes — Exchange); 15% TSL Equity (Exchange to BMC)
Currency Note	KFO equity contribution denominated in EUR (€35,000,000); converted at €1 = $1.0914 (spot rate, March 14, 2023 RSA date); USD equivalent ~$38,200,000

[sheet: Sources of Funds]

Line #	Source Description	Payor Entity	Currency	Amount (Local Currency)	FX Rate	USD Equivalent	Wire Reference / Notes
1	KFO Holdings SA — Equity Contribution per Equity Subscription Agreement dated May 22, 2023	KFO Holdings Société Anonyme	EUR	€35,000,000.00	1.0914	$38,199,000.00	Wire from KFO account at Aegean Capital Bank SA, Athens; credited to TSL operating account at Nordbank International AG, Zürich; Ref: KFO-EQUITY-063023
2	TSL Existing Cash (supplemental closing costs, if any)	Thalassa Shipping & Logistics SA	USD	—	—	$1,000.00	Nominal rounding / adjustment amount from TSL operating account; placeholder for final reconciliation
TOTAL SOURCES	$38,200,000.00

[sheet: Uses of Funds]

Line #	Use Description	Payee Entity	Payee Address	Currency	Amount (USD)	Payment Method	Wire Instructions Reference	Notes
1	Payment of Missed Unsecured Notes Interest — December 1, 2022 Coupon ($50M × 8.25% ÷ 2)	Garrison Trust Company (as Indenture Trustee for 8.25% Senior Unsecured Notes due 2025)	100 Wall Street, 16th Floor, New York, NY 10005	USD	$2,062,500.00	Wire Transfer	See Wire Instructions Tab, Line 1	Per Consent and Waiver Letter dated March 20, 2023; cure of missed semi-annual coupon due December 1, 2022; 30-day cure period expired January 1, 2023; waived under RSA conditioned on payment at closing; CUSIP 87265BAB5
2	Calderwood & Harkness LLP — Final Legal Fees and Disbursements (net of retainer)	Calderwood & Harkness LLP	780 Third Avenue, New York, NY 10017	USD	$3,489,930.00	Wire Transfer	See Wire Instructions Tab, Line 2	Total fees billed: $3,847,250; Total disbursements: $142,680; Grand total: $3,989,930; Less retainer applied: ($500,000); Net amount due at closing: $3,489,930
3	Kensington Veltrian Partners LLC — Completion Fee (RSA)	Kensington Veltrian Partners LLC	300 Park Avenue, 12th Floor, New York, NY 10022	USD	$4,500,000.00	Wire Transfer	See Wire Instructions Tab, Line 3	Completion fee per KHP engagement letter; triggered by execution and closing of RSA; monthly advisory fees ($250,000/month) invoiced separately through closing
4	Vassiliou & Demetriou Law Offices — Greek Counsel Fees	Vassiliou & Demetriou Law Offices	15 Vasilissis Sofias Avenue, Athens 10674, Greece	EUR/USD	$485,000.00	Wire Transfer	See Wire Instructions Tab, Line 4	Fees for Greek insolvency law advisory, cross-border coordination, and RSA closing support; Alexandros Vassiliou, Lead Partner
5	Grainger, Holt & Associates LLP — Auditor Consent / Bring-Down Fees	Grainger, Holt & Associates LLP	25 Cabot Square, Canary Wharf, London E14 4QA, UK	USD	$175,000.00	Wire Transfer	See Wire Instructions Tab, Line 5	Fees for comfort letters and bring-down procedures in connection with RSA closing
6	Drakos Maritime Valuations Ltd. — Updated Appraisal Fee	Drakos Maritime Valuations Ltd.	28 Poseidonos Avenue, Piraeus 18531, Greece	USD	$95,000.00	Wire Transfer	See Wire Instructions Tab, Line 6	Fleet appraisal dated November 1, 2022 ($623M valuation); update/confirmation for closing
7	Pendleton Claim Services Inc. — Standby Engagement Termination Fee	Pendleton Claim Services Inc.	1601 Elm Street, Suite 4200, Dallas, TX 75201	USD	$0.00	N/A	N/A	No amounts owed; standby engagement signed November 15, 2022; terminated July 10, 2023; no activation occurred; confirmed zero balance per termination letter
8	Seaward & Beckett Insurance Brokers Ltd. — D&O Policy Premium (pro-rata closing adjustment)	Seaward & Beckett Insurance Brokers Ltd.	71 Fenchurch Street, London EC3M 4BS, UK	USD	$125,000.00	Wire Transfer	See Wire Instructions Tab, Line 7	D&O policy with Promontory Indemnity Insurance Co.; Policy PII-DO-2022-08847; $25M aggregate limit; premium adjustment for restructured entity
9	TSL Liquidity Reserve — Deposited to TSL Operating Account	Thalassa Shipping & Logistics SA (Operating Account at Nordbank International AG)	Bahnhofstrasse 78, 8001 Zürich, Switzerland	USD	$27,267,570.00	Wire Transfer	See Wire Instructions Tab, Line 8	Residual proceeds from KFO equity contribution after transaction costs; to fund working capital and satisfy post-RSA Minimum Liquidity covenant of $30,000,000
TOTAL USES	$38,200,000.00

[sheet: Non-Cash Items (Memo)]

Line #	Description	Party A	Party B	Amount / Value	Instrument Type	Effective Date	Notes
1	Senior Secured Credit Facility — Amendment Fee (1.00% of $540M outstanding, paid in kind)	Thalassa Shipping & Logistics SA / Thalassa Americas Inc.	Nordbank International AG (as Administrative Agent for Lender Syndicate)	$5,400,000	PIK — Capitalized to Outstanding Principal	June 30, 2023	Per Amendment No. 1 to Senior Secured Credit Agreement dated May 15, 2023; fee of 1.00% × $540,000,000 = $5,400,000; no cash disbursement; added to outstanding TLA principal
2	Mezzanine Notes Exchange — Cancellation of Old Mezzanine Notes	Dralvecen Mezzanine Capital LLC	Thalassa Shipping & Logistics SA	$112,300,000 (cancelled)	Cancellation of 11.5% PIK Toggle Second-Lien Mezzanine Notes (original $100M + $12.3M PIK capitalized)	June 30, 2023	Original mezzanine notes dated June 15, 2019; all PIK since Q2 2022; Rebecca Quimby (Senior Partner, BMC) authorized signatory
3	Mezzanine Notes Exchange — Issuance of New Second-Lien Notes to BMC	Thalassa Shipping & Logistics SA	Dralvecen Mezzanine Capital LLC	$60,000,000	10.0% PIK Second-Lien Notes due June 2028	June 30, 2023	Per New Second-Lien Note Purchase Agreement dated May 18, 2023 and New Second-Lien Notes Indenture dated May 18, 2023; Garrison Trust Company as indenture trustee; debt haircut of 46.6% [($112.3M − $60M) ÷ $112.3M]
4	Mezzanine Notes Exchange — Issuance of 15% TSL Equity to BMC	Thalassa Shipping & Logistics SA	Dralvecen Mezzanine Capital LLC	15% of TSL equity	Ordinary Shares — TSL SA	June 30, 2023	Dilutes Kostandinos family from 80% to 68% (Dimitrios Kostandinos from 62% to ~52.7%; Elena Kostandinos-Pavlou from 18% to ~15.3%); non-family holders from 20% to 17%; per RSA and Equity Subscription Agreement
5	Senior Secured Facility — $75M TLA PIK Conversion	Thalassa Shipping & Logistics SA / Thalassa Americas Inc.	Nordbank International AG (as Administrative Agent)	$75,000,000 converted from cash-pay to PIK	Amendment to Term Loan A — PIK Toggle Tranche	June 30, 2023	Per Amendment No. 1; reduces cash debt service; $75M of TLA principal payments converted to PIK; no cash movement
6	Senior Secured Facility — Revolver Commitment Reduction	Nordbank International AG (as Administrative Agent)	Lender Syndicate	Commitment reduced from $200,000,000 to $150,000,000	Revolving Credit Facility Amendment	June 30, 2023	Per Amendment No. 1; $185M drawn as of Sept. 30, 2022; post-amendment commitment cap $150M; excess drawings to be repaid per agreed schedule
7	Senior Secured Facility — Retroactive Waiver of Default Interest	Nordbank International AG (as Administrative Agent)	Thalassa Shipping & Logistics SA / Thalassa Americas Inc.	Waiver of +200 bps default rate surcharge	Waiver — No Cash Impact	June 30, 2023	Default rate of SOFR + 575 bps (375 bps + 200 bps) retroactively waived; standard rate of SOFR + 375 bps restored
8	Senior Secured Facility — Covenant Resets	All Parties	All Parties	N/A	Amendment Terms — No Cash Impact	June 30, 2023	Max Net Leverage reset to 7.00x (stepping to 5.50x by Q4 2025); Minimum Liquidity reduced to $30M (from $40M); Interest Coverage Ratio waived through Q4 2023; Maturity extended from June 15, 2024 to June 15, 2027
9	Intercompany Note Amendment — TAI to TSL	Thalassa Americas Inc.	Thalassa Shipping & Logistics SA	$76,400,000 (restated)	Amended and Restated Subordinated Intercompany Promissory Note	June 30, 2023	Per Amended and Restated Intercompany Promissory Note dated May 25, 2023; maturity extended to December 2028; interest rate reduced from 5.0% to 2.0%; remains subordinated to all senior and second-lien indebtedness
10	Amended and Restated Intercreditor Agreement	Nordbank International AG (First-Lien Agent)	Dralvecen Mezzanine Capital LLC (Second-Lien Holder)	N/A	Intercreditor Agreement — Amended and Restated	June 30, 2023	Per Amended and Restated Intercreditor Agreement dated May 15, 2023; original agreement dated June 15, 2019; updated to reflect new $60M second-lien notes structure

[sheet: Wire Instructions]

Wire Line #	Payee Entity	Payee Contact	Bank Name	Bank Address	ABA / SWIFT	Account Name	Account Number	Reference / Memo	Amount (USD)	Timing
1	Garrison Trust Company	N/A	Greaves Bancorp	383 Madison Avenue, New York, NY 10179	ABA: 021000021	Garrison Trust Company — Unsecured Notes Trustee Account	[Acct #]	TSL — Unsecured Notes Coupon Cure — Dec 2022 — CUSIP 87265BAB5	$2,062,500.00	T+0 (June 30, 2023); prior to 12:00 PM ET
2	Calderwood & Harkness LLP	Colette Whitman, Billing Partner	Ridgeway Capital Markets	399 Park Avenue, New York, NY 10043	ABA: 021000089	Calderwood & Harkness LLP — Client Trust / Operating Account	[Acct #]	Matter 1044-00003 — TSL/TAI — Final Fee Payment Net of Retainer	$3,489,930.00	T+0 (June 30, 2023); prior to 2:00 PM ET
3	Kensington Veltrian Partners LLC	James Calloway, Managing Director	Adriatic Savings Bank	100 West 33rd Street, New York, NY 10001	ABA: 026009593	Kensington Veltrian Partners LLC — Operating Account	[Acct #]	TSL — RSA Completion Fee	$4,500,000.00	T+0 (June 30, 2023); prior to 2:00 PM ET
4	Vassiliou & Demetriou Law Offices	Alexandros Vassiliou, Lead Partner	Marlowe Financial	40 Stadiou Street, Athens 10564, Greece	SWIFT: CRBAGRAAXXX	Vassiliou & Demetriou Law Offices — Client Funds Account	[Acct #]	TSL — Greek Counsel Fees — RSA Closing	$485,000.00	T+0 (June 30, 2023); prior to 4:00 PM CET
5	Grainger, Holt & Associates LLP	Malcolm Holt, Lead Engagement Partner	Camberwell Bancorp	1 Churchill Place, London E14 5HP, UK	SWIFT: BARCGB22XXX	Grainger, Holt & Associates LLP — Operating Account	[Acct #]	TSL — Auditor Fees — RSA Closing	$175,000.00	T+0 (June 30, 2023); prior to 4:00 PM GMT
6	Drakos Maritime Valuations Ltd.	Captain Nikos Drakos, Managing Director	Sundial Commerce Bank	4 Amerikis Street, Athens 10564, Greece	SWIFT: PIABORBU	Drakos Maritime Valuations Ltd. — Operating Account	[Acct #]	TSL — Fleet Appraisal Update Fee	$95,000.00	T+0 (June 30, 2023); prior to 4:00 PM CET
7	Seaward & Beckett Insurance Brokers Ltd.	Ian Beckett, Key Contact	Westvale Financial	8 Canada Square, London E14 5HQ, UK	SWIFT: MIDLGB22XXX	Seaward & Beckett Insurance Brokers Ltd. — Premium Trust Account	[Acct #]	TSL — D&O Premium Adjustment — Policy PII-DO-2022-08847	$125,000.00	T+0 (June 30, 2023); prior to 4:00 PM GMT
8	Thalassa Shipping & Logistics SA — Operating Account (Liquidity Reserve)	Irini Dalakoura, CFO	Nordbank International AG	Bahnhofstrasse 78, 8001 Zürich, Switzerland	SWIFT: NRDKCHZZXXX	Thalassa Shipping & Logistics SA — USD Operating Account	[Acct #]	KFO Equity Contribution — Residual to TSL Operating / Liquidity Reserve	$27,267,570.00	T+0 (June 30, 2023); prior to 12:00 PM CET
TOTAL WIRES	$38,200,000.00

[sheet: Reconciliation]

SOURCES

Source	KFO Holdings SA — Equity Contribution (€35,000,000 × 1.0914)	$38,199,000.00	Per Equity Subscription Agreement dated May 22, 2023
Source	TSL Existing Cash (rounding / adjustment)	$1,000.00	Nominal supplemental amount from TSL operating account
TOTAL SOURCES	$38,200,000.00

USES

Use	Garrison Trust Company — Missed Unsecured Coupon Cure	$2,062,500.00	$50M × 8.25% ÷ 2
Use	Calderwood & Harkness LLP — Legal Fees (net of $500K retainer)	$3,489,930.00	Total $3,989,930 less $500,000 retainer
Use	Kensington Veltrian Partners LLC — RSA Completion Fee	$4,500,000.00
Use	Vassiliou & Demetriou Law Offices — Greek Counsel Fees	$485,000.00
Use	Grainger, Holt & Associates LLP — Auditor Fees	$175,000.00
Use	Drakos Maritime Valuations Ltd. — Appraisal Fee	$95,000.00
Use	Pendleton Claim Services Inc. — Standby Engagement Termination Fee	$0.00	No amounts owed; zero balance confirmed
Use	Seaward & Beckett Insurance Brokers Ltd. — D&O Premium Adjustment	$125,000.00
Use	TSL Liquidity Reserve (residual to operating account)	$27,267,570.00	Ensures post-RSA Min. Liquidity covenant of $30M is met
TOTAL USES	$38,200,000.00
NET	Sources minus Uses	$0.00	Balanced — confirmed

POST-CLOSING CAPITAL STRUCTURE (Memo)

Debt	Senior Secured — Term Loan A (post-amendment)	$270,000,000.00	Includes $75M PIK conversion tranche; plus $5.4M PIK amendment fee capitalized; maturity June 15, 2027
Debt	Senior Secured — Revolving Credit Facility (drawn)	$185,000,000.00	Post-RSA commitment reduced to $150M; excess to be repaid per schedule
Debt	Senior Secured — Term Loan B (U.S. Tranche)	$85,000,000.00	Non-amortizing bullet; maturity June 15, 2027
Debt	New Second-Lien Notes (BMC)	$60,000,000.00	10.0% PIK; due June 2028; exchanged for $112.3M old mezzanine
Debt	Senior Unsecured Notes	$50,000,000.00	8.25% cash pay; due March 1, 2025; unimpaired; CUSIP 87265BAB5
Debt	Intercompany Note (TAI → TSL)	$76,400,000.00	Subordinated; 2.0% interest; maturity December 2028
Debt	Total Funded Debt (post-closing)	$726,400,000.00	$270M + $185M + $85M + $60M + $50M + $76.4M
Equity	Kostandinos Family (post-dilution)	—	68% of TSL equity (Dimitrios ~52.7%, Elena ~15.3%)
Equity	Dralvecen Mezzanine Capital LLC	—	15% of TSL equity
Equity	Other / Non-Family Holders	—	17% of TSL equity
Equity	KFO New Equity Contribution	$38,200,000.00	€35,000,000 (~$38.2M)

[sheet: Cover & Summary]
Field | Value
Document Title | Funds Flow Memorandum — RSA Closing
Date Prepared | June 29, 2023
Closing / Effective Date | June 30, 2023
Prepared By | Amy Chesterton, Lead Associate, Calderwood & Harkness LLP
Reviewed By | Nathaniel Bower, Responsible Partner, Calderwood & Harkness LLP
Matter Number | 1044-00003
Client | Thalassa Shipping & Logistics SA / Thalassa Americas Inc.
Transaction | Restructuring Support Agreement — Closing Transactions
RSA Execution Date | March 14, 2023
RSA Outside Date / Closing Date | June 30, 2023
Reference Documents | Restructuring Support Agreement (Mar. 14, 2023); Amendment No. 1 to Senior Secured Credit Agreement (May 15, 2023); New Second-Lien Note Purchase Agreement (May 18, 2023); Equity Subscription Agreement — KFO Holdings SA (May 22, 2023); Amended and Restated Intercompany Promissory Note (May 25, 2023); Consent and Waiver Letter — Garrison Trust Company (Mar. 20, 2023)
SUMMARY OF FUND MOVEMENTS
Total Cash Inflows (Sources) | $38,200,000
Total Cash Outflows (Uses) | $38,200,000
Net Cash Movement | $0 (balanced)
Non-Cash / PIK Items (Memo Only) | $5,400,000 (Amendment Fee — PIK); $60,000,000 (New Second-Lien Notes — Exchange); 15% TSL Equity (Exchange to BMC)
Currency Note | KFO equity contribution denominated in EUR (€35,000,000); converted at €1 = $1.0914 (spot rate, March 14, 2023 RSA date); USD equivalent ~$38,200,000
[sheet: Sources of Funds]
Line # | Source Description | Payor Entity | Currency | Amount (Local Currency) | FX Rate | USD Equivalent | Wire Reference / Notes
1 | KFO Holdings SA — Equity Contribution per Equity Subscription Agreement dated May 22, 2023 | KFO Holdings Société Anonyme | EUR | €35,000,000.00 | 1.0914 | $38,199,000.00 | Wire from KFO account at Aegean Capital Bank SA, Athens; credited to TSL operating account at Nordbank International AG, Zürich; Ref: KFO-EQUITY-063023
2 | TSL Existing Cash (supplemental closing costs, if any) | Thalassa Shipping & Logistics SA | USD | — | — | $1,000.00 | Nominal rounding / adjustment amount from TSL operating account; placeholder for final reconciliation
TOTAL SOURCES | $38,200,000.00
[sheet: Uses of Funds]
Line # | Use Description | Payee Entity | Payee Address | Currency | Amount (USD) | Payment Method | Wire Instructions Reference | Notes
1 | Payment of Missed Unsecured Notes Interest — December 1, 2022 Coupon ($50M × 8.25% ÷ 2) | Garrison Trust Company (as Indenture Trustee for 8.25% Senior Unsecured Notes due 2025) | 100 Wall Street, 16th Floor, New York, NY 10005 | USD | $2,062,500.00 | Wire Transfer | See Wire Instructions Tab, Line 1 | Per Consent and Waiver Letter dated March 20, 2023; cure of missed semi-annual coupon due December 1, 2022; 30-day cure period expired January 1, 2023; waived under RSA conditioned on payment at closing; CUSIP 87265BAB5
2 | Calderwood & Harkness LLP — Final Legal Fees and Disbursements (net of retainer) | Calderwood & Harkness LLP | 780 Third Avenue, New York, NY 10017 | USD | $3,489,930.00 | Wire Transfer | See Wire Instructions Tab, Line 2 | Total fees billed: $3,847,250; Total disbursements: $142,680; Grand total: $3,989,930; Less retainer applied: ($500,000); Net amount due at closing: $3,489,930
3 | Kensington Veltrian Partners LLC — Completion Fee (RSA) | Kensington Veltrian Partners LLC | 300 Park Avenue, 12th Floor, New York, NY 10022 | USD | $4,500,000.00 | Wire Transfer | See Wire Instructions Tab, Line 3 | Completion fee per KHP engagement letter; triggered by execution and closing of RSA; monthly advisory fees ($250,000/month) invoiced separately through closing
4 | Vassiliou & Demetriou Law Offices — Greek Counsel Fees | Vassiliou & Demetriou Law Offices | 15 Vasilissis Sofias Avenue, Athens 10674, Greece | EUR/USD | $485,000.00 | Wire Transfer | See Wire Instructions Tab, Line 4 | Fees for Greek insolvency law advisory, cross-border coordination, and RSA closing support; Alexandros Vassiliou, Lead Partner
5 | Grainger, Holt & Associates LLP — Auditor Consent / Bring-Down Fees | Grainger, Holt & Associates LLP | 25 Cabot Square, Canary Wharf, London E14 4QA, UK | USD | $175,000.00 | Wire Transfer | See Wire Instructions Tab, Line 5 | Fees for comfort letters and bring-down procedures in connection with RSA closing
6 | Drakos Maritime Valuations Ltd. — Updated Appraisal Fee | Drakos Maritime Valuations Ltd. | 28 Poseidonos Avenue, Piraeus 18531, Greece | USD | $95,000.00 | Wire Transfer | See Wire Instructions Tab, Line 6 | Fleet appraisal dated November 1, 2022 ($623M valuation); update/confirmation for closing
7 | Pendleton Claim Services Inc. — Standby Engagement Termination Fee | Pendleton Claim Services Inc. | 1601 Elm Street, Suite 4200, Dallas, TX 75201 | USD | $0.00 | N/A | N/A | No amounts owed; standby engagement signed November 15, 2022; terminated July 10, 2023; no activation occurred; confirmed zero balance per termination letter
8 | Seaward & Beckett Insurance Brokers Ltd. — D&O Policy Premium (pro-rata closing adjustment) | Seaward & Beckett Insurance Brokers Ltd. | 71 Fenchurch Street, London EC3M 4BS, UK | USD | $125,000.00 | Wire Transfer | See Wire Instructions Tab, Line 7 | D&O policy with Promontory Indemnity Insurance Co.; Policy PII-DO-2022-08847; $25M aggregate limit; premium adjustment for restructured entity
9 | TSL Liquidity Reserve — Deposited to TSL Operating Account | Thalassa Shipping & Logistics SA (Operating Account at Nordbank International AG) | Bahnhofstrasse 78, 8001 Zürich, Switzerland | USD | $27,267,570.00 | Wire Transfer | See Wire Instructions Tab, Line 8 | Residual proceeds from KFO equity contribution after transaction costs; to fund working capital and satisfy post-RSA Minimum Liquidity covenant of $30,000,000
TOTAL USES | $38,200,000.00
[sheet: Non-Cash Items (Memo)]
Line # | Description | Party A | Party B | Amount / Value | Instrument Type | Effective Date | Notes
1 | Senior Secured Credit Facility — Amendment Fee (1.00% of $540M outstanding, paid in kind) | Thalassa Shipping & Logistics SA / Thalassa Americas Inc. | Nordbank International AG (as Administrative Agent for Lender Syndicate) | $5,400,000 | PIK — Capitalized to Outstanding Principal | June 30, 2023 | Per Amendment No. 1 to Senior Secured Credit Agreement dated May 15, 2023; fee of 1.00% × $540,000,000 = $5,400,000; no cash disbursement; added to outstanding TLA principal
2 | Mezzanine Notes Exchange — Cancellation of Old Mezzanine Notes | Dralvecen Mezzanine Capital LLC | Thalassa Shipping & Logistics SA | $112,300,000 (cancelled) | Cancellation of 11.5% PIK Toggle Second-Lien Mezzanine Notes (original $100M + $12.3M PIK capitalized) | June 30, 2023 | Original mezzanine notes dated June 15, 2019; all PIK since Q2 2022; Rebecca Quimby (Senior Partner, BMC) authorized signatory
3 | Mezzanine Notes Exchange — Issuance of New Second-Lien Notes to BMC | Thalassa Shipping & Logistics SA | Dralvecen Mezzanine Capital LLC | $60,000,000 | 10.0% PIK Second-Lien Notes due June 2028 | June 30, 2023 | Per New Second-Lien Note Purchase Agreement dated May 18, 2023 and New Second-Lien Notes Indenture dated May 18, 2023; Garrison Trust Company as indenture trustee; debt haircut of 46.6% [($112.3M − $60M) ÷ $112.3M]
4 | Mezzanine Notes Exchange — Issuance of 15% TSL Equity to BMC | Thalassa Shipping & Logistics SA | Dralvecen Mezzanine Capital LLC | 15% of TSL equity | Ordinary Shares — TSL SA | June 30, 2023 | Dilutes Kostandinos family from 80% to 68% (Dimitrios Kostandinos from 62% to ~52.7%; Elena Kostandinos-Pavlou from 18% to ~15.3%); non-family holders from 20% to 17%; per RSA and Equity Subscription Agreement
5 | Senior Secured Facility — $75M TLA PIK Conversion | Thalassa Shipping & Logistics SA / Thalassa Americas Inc. | Nordbank International AG (as Administrative Agent) | $75,000,000 converted from cash-pay to PIK | Amendment to Term Loan A — PIK Toggle Tranche | June 30, 2023 | Per Amendment No. 1; reduces cash debt service; $75M of TLA principal payments converted to PIK; no cash movement
6 | Senior Secured Facility — Revolver Commitment Reduction | Nordbank International AG (as Administrative Agent) | Lender Syndicate | Commitment reduced from $200,000,000 to $150,000,000 | Revolving Credit Facility Amendment | June 30, 2023 | Per Amendment No. 1; $185M drawn as of Sept. 30, 2022; post-amendment commitment cap $150M; excess drawings to be repaid per agreed schedule
7 | Senior Secured Facility — Retroactive Waiver of Default Interest | Nordbank International AG (as Administrative Agent) | Thalassa Shipping & Logistics SA / Thalassa Americas Inc. | Waiver of +200 bps default rate surcharge | Waiver — No Cash Impact | June 30, 2023 | Default rate of SOFR + 575 bps (375 bps + 200 bps) retroactively waived; standard rate of SOFR + 375 bps restored
8 | Senior Secured Facility — Covenant Resets | All Parties | All Parties | N/A | Amendment Terms — No Cash Impact | June 30, 2023 | Max Net Leverage reset to 7.00x (stepping to 5.50x by Q4 2025); Minimum Liquidity reduced to $30M (from $40M); Interest Coverage Ratio waived through Q4 2023; Maturity extended from June 15, 2024 to June 15, 2027
9 | Intercompany Note Amendment — TAI to TSL | Thalassa Americas Inc. | Thalassa Shipping & Logistics SA | $76,400,000 (restated) | Amended and Restated Subordinated Intercompany Promissory Note | June 30, 2023 | Per Amended and Restated Intercompany Promissory Note dated May 25, 2023; maturity extended to December 2028; interest rate reduced from 5.0% to 2.0%; remains subordinated to all senior and second-lien indebtedness
10 | Amended and Restated Intercreditor Agreement | Nordbank International AG (First-Lien Agent) | Dralvecen Mezzanine Capital LLC (Second-Lien Holder) | N/A | Intercreditor Agreement — Amended and Restated | June 30, 2023 | Per Amended and Restated Intercreditor Agreement dated May 15, 2023; original agreement dated June 15, 2019; updated to reflect new $60M second-lien notes structure
[sheet: Wire Instructions]
Wire Line # | Payee Entity | Payee Contact | Bank Name | Bank Address | ABA / SWIFT | Account Name | Account Number | Reference / Memo | Amount (USD) | Timing
1 | Garrison Trust Company | N/A | Greaves Bancorp | 383 Madison Avenue, New York, NY 10179 | ABA: 021000021 | Garrison Trust Company — Unsecured Notes Trustee Account | [Acct #] | TSL — Unsecured Notes Coupon Cure — Dec 2022 — CUSIP 87265BAB5 | $2,062,500.00 | T+0 (June 30, 2023); prior to 12:00 PM ET
2 | Calderwood & Harkness LLP | Colette Whitman, Billing Partner | Ridgeway Capital Markets | 399 Park Avenue, New York, NY 10043 | ABA: 021000089 | Calderwood & Harkness LLP — Client Trust / Operating Account | [Acct #] | Matter 1044-00003 — TSL/TAI — Final Fee Payment Net of Retainer | $3,489,930.00 | T+0 (June 30, 2023); prior to 2:00 PM ET
3 | Kensington Veltrian Partners LLC | James Calloway, Managing Director | Adriatic Savings Bank | 100 West 33rd Street, New York, NY 10001 | ABA: 026009593 | Kensington Veltrian Partners LLC — Operating Account | [Acct #] | TSL — RSA Completion Fee | $4,500,000.00 | T+0 (June 30, 2023); prior to 2:00 PM ET
4 | Vassiliou & Demetriou Law Offices | Alexandros Vassiliou, Lead Partner | Marlowe Financial | 40 Stadiou Street, Athens 10564, Greece | SWIFT: CRBAGRAAXXX | Vassiliou & Demetriou Law Offices — Client Funds Account | [Acct #] | TSL — Greek Counsel Fees — RSA Closing | $485,000.00 | T+0 (June 30, 2023); prior to 4:00 PM CET
5 | Grainger, Holt & Associates LLP | Malcolm Holt, Lead Engagement Partner | Camberwell Bancorp | 1 Churchill Place, London E14 5HP, UK | SWIFT: BARCGB22XXX | Grainger, Holt & Associates LLP — Operating Account | [Acct #] | TSL — Auditor Fees — RSA Closing | $175,000.00 | T+0 (June 30, 2023); prior to 4:00 PM GMT
6 | Drakos Maritime Valuations Ltd. | Captain Nikos Drakos, Managing Director | Sundial Commerce Bank | 4 Amerikis Street, Athens 10564, Greece | SWIFT: PIABORBU | Drakos Maritime Valuations Ltd. — Operating Account | [Acct #] | TSL — Fleet Appraisal Update Fee | $95,000.00 | T+0 (June 30, 2023); prior to 4:00 PM CET
7 | Seaward & Beckett Insurance Brokers Ltd. | Ian Beckett, Key Contact | Westvale Financial | 8 Canada Square, London E14 5HQ, UK | SWIFT: MIDLGB22XXX | Seaward & Beckett Insurance Brokers Ltd. — Premium Trust Account | [Acct #] | TSL — D&O Premium Adjustment — Policy PII-DO-2022-08847 | $125,000.00 | T+0 (June 30, 2023); prior to 4:00 PM GMT
8 | Thalassa Shipping & Logistics SA — Operating Account (Liquidity Reserve) | Irini Dalakoura, CFO | Nordbank International AG | Bahnhofstrasse 78, 8001 Zürich, Switzerland | SWIFT: NRDKCHZZXXX | Thalassa Shipping & Logistics SA — USD Operating Account | [Acct #] | KFO Equity Contribution — Residual to TSL Operating / Liquidity Reserve | $27,267,570.00 | T+0 (June 30, 2023); prior to 12:00 PM CET
TOTAL WIRES | $38,200,000.00
[sheet: Reconciliation]
Category | Description | Amount (USD) | Notes
SOURCES
Source | KFO Holdings SA — Equity Contribution (€35,000,000 × 1.0914) | $38,199,000.00 | Per Equity Subscription Agreement dated May 22, 2023
Source | TSL Existing Cash (rounding / adjustment) | $1,000.00 | Nominal supplemental amount from TSL operating account
TOTAL SOURCES | $38,200,000.00
USES
Use | Garrison Trust Company — Missed Unsecured Coupon Cure | $2,062,500.00 | $50M × 8.25% ÷ 2
Use | Calderwood & Harkness LLP — Legal Fees (net of $500K retainer) | $3,489,930.00 | Total $3,989,930 less $500,000 retainer
Use | Kensington Veltrian Partners LLC — RSA Completion Fee | $4,500,000.00
Use | Vassiliou & Demetriou Law Offices — Greek Counsel Fees | $485,000.00
Use | Grainger, Holt & Associates LLP — Auditor Fees | $175,000.00
Use | Drakos Maritime Valuations Ltd. — Appraisal Fee | $95,000.00
Use | Pendleton Claim Services Inc. — Standby Engagement Termination Fee | $0.00 | No amounts owed; zero balance confirmed
Use | Seaward & Beckett Insurance Brokers Ltd. — D&O Premium Adjustment | $125,000.00
Use | TSL Liquidity Reserve (residual to operating account) | $27,267,570.00 | Ensures post-RSA Min. Liquidity covenant of $30M is met
TOTAL USES | $38,200,000.00
NET | Sources minus Uses | $0.00 | Balanced — confirmed
POST-CLOSING CAPITAL STRUCTURE (Memo)
Debt | Senior Secured — Term Loan A (post-amendment) | $270,000,000.00 | Includes $75M PIK conversion tranche; plus $5.4M PIK amendment fee capitalized; maturity June 15, 2027
Debt | Senior Secured — Revolving Credit Facility (drawn) | $185,000,000.00 | Post-RSA commitment reduced to $150M; excess to be repaid per schedule
Debt | Senior Secured — Term Loan B (U.S. Tranche) | $85,000,000.00 | Non-amortizing bullet; maturity June 15, 2027
Debt | New Second-Lien Notes (BMC) | $60,000,000.00 | 10.0% PIK; due June 2028; exchanged for $112.3M old mezzanine
Debt | Senior Unsecured Notes | $50,000,000.00 | 8.25% cash pay; due March 1, 2025; unimpaired; CUSIP 87265BAB5
Debt | Intercompany Note (TAI → TSL) | $76,400,000.00 | Subordinated; 2.0% interest; maturity December 2028
Debt | Total Funded Debt (post-closing) | $726,400,000.00 | $270M + $185M + $85M + $60M + $50M + $76.4M
Equity | Kostandinos Family (post-dilution) | — | 68% of TSL equity (Dimitrios ~52.7%, Elena ~15.3%)
Equity | Dralvecen Mezzanine Capital LLC | — | 15% of TSL equity
Equity | Other / Non-Family Holders | — | 17% of TSL equity
Equity | KFO New Equity Contribution | $38,200,000.00 | €35,000,000 (~$38.2M)

[sheet: Cover & Summary]

SUMMARY OF FUND MOVEMENTS

SOURCES

Record

Parties

Dates

Amounts