Scorpio Tankers Announces Financing for Four Ships

(Press Release)
Friday, September 30, 2011

Scorpio Tankers Inc. signed a committed term sheet for a $92m credit facility with Credit Agricole Corporate and Investment Bank and Skandinaviska Enskilda Banken AB to partially finance four of the five newbuilding 52,000 DWT product tankers (MRs) that the Company has contracted to be built at the Hyundai Mipo Dockyard in South Korea. The Company also announced amendments to the financial covenants in its existing credit facilities.
Emanuele Lauro, CEO of Scorpio Tankers, commented, "We are pleased to have two additional strong international commercial banks as part of our banking group. We are looking forward to working with CA-CIB and SEB, and the rest of our banking group. In addition, we thank our existing lenders for favorably amending our financial covenants."

2011 Newbuilding Credit Facility
The 2011 Newbuilding Credit Facility with CA-CIB and SEB is for the partial financing of the pre-delivery and delivery installments for the four newbuildings, which are scheduled for delivery between July and October 2012. The Company is in discussions to obtain financing for the fifth newbuilding. The facility is for an aggregate of $92.0 million to be made available in four tranches, one for each vessel, in the amount of $23.0 million, which is approximately 61% of contracted price for each vessel. Drawdowns will be available after the first 39% of the contracted price for each vessel is paid by the Company and subject to certain other conditions precedent. The tranche relating to each vessel will be repaid after delivery of that vessel in quarterly installments of $375,000, which equates to a repayment profile of 15.33 years. The covenants and other conditions are similar to the Company's existing credit facilities.

The Company currently has $134.7 million remaining to be paid on the construction contracts for the four newbuildings and $33.6 million for the fifth newbuilding.

Existing Debt Facilities
The Company has three existing credit facilities (the 2010 Credit Facility, the 2011 Credit Facility, and the STI Spirit Credit Facility). As of September 30, 2011 (i) the 2010 Credit Facility (a reducing revolving facility) will have $78.0 million outstanding, and $54.9 million available to be drawn down, (ii) the 2011 Credit Facility will have $34.3 million outstanding and $115.0 million available to finance up to 50% of the purchase price for vessel acquisitions, and (iii) the STI Spirit Credit Facility will have $26.5 million outstanding. In addition to the $54.9 million available from the 2010 Credit Facility, as of September 30, 2011, the Company will have a cash balance of approximately $25.0 million.

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