MONACO, Oct. 20, 2022 (GLOBE NEWSWIRE) -- Scorpio Tankers Inc. (NYSE:STNG) ("Scorpio Tankers," or the "Company") announced today that it has exercised the purchase options on eight ships and the repayment of a credit facility.
The Exercise of Purchase Options on Eight Ships
The Company has given notice to exercise its purchase options on one LR2 product tanker (STI Alexis) and five MR product tankers (STI Duchessa, STI San Antonio, STI Mayfair, STI St. Charles, and STI Yorkville). These vessels were sold and leased back by the Company in the fourth quarter of 2018. The leases bear interest at LIBOR plus a margin of 3.00% per annum. The purchases, which are expected to occur in the fourth quarter of 2022, are expected to result in a debt reduction of $85.8 million for the Company.
In addition, the Company has given notice to exercise its purchase options on two LR2 product tankers (STI Steadfast and STI Supreme). These vessels were acquired as part of the acquisition of Navig8 Product Tankers Inc. in 2017. The leases bear interest at LIBOR plus a margin of 5.40% per annum. The purchases, which are expected to occur in 2023, are expected to result in a debt reduction of $55.6 million for the Company.
Repayment of a Credit Facility
The Company has given notice to repay a bilateral credit facility, which finances one LR2 product tanker (STI Madison) and has $17.5 million of outstanding debt. This credit facility is expected to be repaid in full within October 2022.