Monaco - Sept 24, 2020
Scorpio Tankers Inc. (NYSE:STNG) (“Scorpio Tankers,” or the “Company”) announced today an update on financing facilities, which are expected to increase liquidity by approximately $82.0 Million.
The Company has finalized commitments from three financial institutions for the sale and leaseback of eight MR product tankers that were previously mentioned and has received a new commitment for a scrubber financing facility.
Sale and Leaseback Facilities
Two of the eight vessels have already been delivered to their buyer, and the remaining six vessels are expected to be delivered to their buyers in the fourth quarter of 2020. Upon completion of all the transactions for the eight vessels and the repayment of their existing debt, the Company expects to have raised approximately $70 million of liquidity in aggregate.
These lease financing arrangements are the result of leasing discussions announced in our Earnings Press Release of August 6, 2020.
Scrubber Financing Facilities
In addition, the Company has received a new commitment of $12.0 million to finance scrubbers on six MRs of which, five have been installed to date.
Including this new financing arrangement, the Company expects to raise approximately $66 million of aggregate additional liquidity (after the repayment of existing debt) once all of the previously announced scrubber financing agreements are closed and drawn.
These drawdowns are expected to occur at varying points in the future as several of these financings are tied to scrubber installations on the Company’s vessels. The facilities that have not been finalized are subject to customary conditions precedent and execution of definitive documentation.
About Scorpio Tankers Inc.
Scorpio Tankers is a provider of marine transportation of petroleum products worldwide. The Company’s fleet consists of 134 owned, finance leased or bareboat chartered-in product tankers (42 LR2 tankers, 12 LR1 tankers, 62 MR tankers and 18 Handymax tankers) with an average age of 4.8 years. The Company also has a leasehold interest in an MR product tanker that is currently under construction. Additional information about the Company is available at the Company’s website www.scorpiotankers.com, which is not a part of this press release.
Scorpio Tankers Inc. press release