Scorpio Tankers sold and leased back, on a bareboat basis, three 2013 built MR product tankers, STI Beryl, STI Le Rocher and STI Larvotto to Bank of Communications Financial Leasing in April 2017.
The sales price was $29 million per vessel and the company bareboat chartered-in the vessels for a period of up to eight years at $8,800 per day per vessel.
The international provider in the transportation for refined petroleum products has the option to purchase these vessels beginning at the end of the fifth year of the agreements through the end of the eighth year of the agreements.
Additionally, a deposit of $4.35 million per vessel was retained by the buyers and will either be applied to the purchase price of the vessel if a purchase option is exercised, or refunded to the company at the expiration of the agreement (as applicable).
Scorpio Tankers said it fully repaid the outstanding balance of $42.1 million on the 2011 Credit Facility and recorded a loss on sales of vessels of $14.2 million in the second quarter of 2017 as a result of these sales. These transactions are being accounted for as sales and operating leasebacks.
In April 2017, the company reached an agreement with an unrelated third party to sell two 2013 built, MR product tankers, STI Emerald and STI Sapphire, for a sales price of $56.4 million in aggregate. The sale of STI Emerald closed in June 2017, and the sale of STI Sapphire closed in July 2017.
As a result of this transaction, the company recorded an aggregate loss on sale and write down of vessel held for sale of $9.1 million. Additionally, the company repaid the aggregate outstanding debt for both vessels of $27.6 million on its BNP Paribas Credit
Facility in June 2017 and wrote-off $0.5 million of deferred financing fees during the second quarter of 2017 as a result of this repayment.
In June 2017, the company entered into a new time charter agreement on a 2015 built, LR2 product tanker for six months at $14,750 per day. The company also has an option to extend the charter for an additional six months at $15,750 per day.
In May 2017, the company entered into a new time charter agreement on a 2013 built, MR product tanker that was previously time chartered-in by the company for six months at $13,000 per day effective June 2017. The company also has the option to extend the charter for an additional six months at $13,250 per day and should the first option be exercised, an option to extend the charter for an additional year at $14,500 per day.