STI in yet another sale and leaseback deal

Jul 20 2018


Scorpio Tankers (STI) has announced another sale and leaseback deal this time involving six MRs and one LR2.

The MRs are the ‘STI San Antonio’, ‘STI Benicia’, ‘STI St Charles’, ‘STI Yorkville’, ‘STI Mayfair’ and ‘STI Duchessa’, while the LR2 is the ‘STI Alexis’.

 

They have been sold to an undisclosed international financial institution.

 

Upon the sale’s completion, STI’s liquidity is expected to increase by $42 mill in aggregate after the repayment of outstanding debt. 

 

As part of the agreements, the company will bareboat charter-in the vessels for seven years. In addition, STI has purchase options beginning at the end of the third year of each agreement. There is also 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, STI said.

 



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