STI in another sale and leaseback deal

Jun 08 2018

Scorpio Tankers (STI) has signed its third sale and leaseback deal in almost as many weeks.

This week, STI said that it has agreed to sell and leaseback six MRs (‘STI Battery’, ‘STI Milwaukee’, ‘STI Tribeca’, ‘STI Bronx’, ‘STI Manhattan’, and ‘STI Seneca’) to CMB Financial Leasing.


Upon completion, the company’s liquidity is expected to increase by $52 mill in total after the repayment of outstanding debt. 


As part of the agreements, the company will bareboat charter-in the vessels for eight years. In addition, STI has purchase options beginning at the start of the fourth year of each agreement, plus a purchase obligation for each vessel upon the expiration of each agreement.


These lease financing arrangements are subject to customary conditions precedent and the execution of definitive documentation.


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