Scorpio lines up $172m in loans for newbuilds
Scorpio Tankers Inc. announced today that the Company has received commitments for a loan facility of up to $172 million from a group of financial institutions including Macquarie Bank Limited (London Branch), DekaBank Deutsche Girozentrale ("DekaBank"), The Export-Import Bank of Korea ("KEXIM") and Garanti-Instituttet for Eksportkreditt ("GIEK").
The loan facility, which is composed of multiple tranches, will be used to finance up to 60% of the market value of eight MR product tankers under construction at Hyundai Mipo Dockyard Co., Ltd. which are scheduled for delivery in 2017 and 2018. The maturity date of each tranche is between six and 12 years from each drawdown date, and the facility bears interest at LIBOR plus a blended margin of 2.02% per annum.
The terms and conditions, including financial covenants, are similar to those set forth in the Company's existing credit facilities. The loan facility is subject to customary conditions precedent and the execution of definitive documentation.