Scorpio Tankers Sells, Leaseback Seven Product Tankers

Scorpio Tankers announced that it has agreed to sell and leaseback six MR product tankers (STI San Antonio, STI Benicia, STI St. Charles, STI Yorkville, STI Mayfair and STI Duchessa) and one LR2 product tanker (STI Alexis) to an international financial institution.

The international provider in the transportation for refined petroleum products said that upon completion, its liquidity is expected to increase by $42 million in aggregate after the repayment of outstanding debt.

These lease financing arrangements are part of the company’s new financing initiatives that were announced on April 25, 2018.

As part of the agreements, the company will bareboat charter-in the vessels for a period of seven years. In addition, the company 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.