Scorpio Tankers Wins $1 Billion Credit for New Vessels

Scorpio Tankers has received commitments from a group of financial institutions for a previously announced $1.0 billion term loan and revolving credit facility.

The over-subscribed Credit Facility was capped at an amount of $1.0 billion, and is expected to be used to finance 45 product tankers. Scorpio Tankers currently owns, lease finances or bareboat charters-in 113 product tankers (39 LR2 tankers, 60 MR tankers and 14 Handymax tankers) with an average age of 7.4 years.

The Credit Facility is expected to consist of a 50% term loan and a 50% revolving loan, and has a final maturity of five years from the signing date (but not later than June 30, 2028).

Emanuele Lauro, Chairman and CEO of the company, said: “We appreciate our lenders and their commitment to the company. There is widespread confidence from market constituents on the persistence of current fundamentals, and the competitive structure, terms, and conditions of this new loan, particularly the revolving line of credit, are testament to that view as well as to the steps we have recently taken.”

Earlier this month, Scorpio Tankers received a commitment from DekaBank Deutsche Girozentrale for a credit facility of up to $94 million. The credit facility will be used to finance one MR product tanker and three LR2 product tankers.