Scorpio Tankers negotiates new loan facilities

May 04 2018


Scorpio Tankers (STI) said that following new financing initiatives, the company has received commitments from four leading European financial institutions for three separate loan facilities of up to $195.9 mill in total.

This will raise $53.9 mill of new liquidity after the repayment of $142 mill of existing secured debt. The company said that it expected to make announcements of further individual transactions in the coming weeks.

STI has received a commitment from ABN AMRO Bank and Skandinaviska Enskilda Banken for a loan facility of up to $120.6 mill.

This loan facility will be used to finance up to 65% of the fair market value of one Handymax, one MR and three LR2s. The facility has a final maturity of five years from the first drawdown date, bears interest at LIBOR plus a margin of 2.6% per annum, and is subject to customary conditions precedent and the execution of definitive documentation.

STI also received a commitment to increase its original $132.5 mill credit facility with ING Bank to $171.2 mill. The increased part of the loan facility will be used to finance up to 65% of the fair market value of one Handymax and one MR.

This increased part of the loan facility has a final maturity during June, 2022, bears interest at LIBOR plus a margin of 2.4% per annum, and is subject to customary conditions precedent and the execution of definitive documentation, STI said.

Furthermore, STI said that it had also received a commitment from a leading European financial institution for a loan facility of up to $36.7 mill, which will be used to finance two MRs.

This loan facility has a final maturity date of June, 2021, bears interest at LIBOR plus a margin of 2.5% per annum, and is also subject to certain conditions precedent and the execution of definitive documentation.

 



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