Scorpio Tankers Announces a Commitment for a New $172Mln Credit Facility for its 8 MR Product Tankers under Construction

By Finance

Scorpio Tankers Inc. (NYSE: STNG) announced Thursday 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).

Scorpio Tankers Announces a Commitment for a New $172Mln Credit Facility for its 8 MR Product Tankers under Construction

Image courtesy: Scorpio Tankers

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.

Scorpio Tankers Inc. is a provider of marine transportation of petroleum products worldwide. Scorpio Tankers Inc. currently owns 77 product tankers (21 LR2, 14 Handymax, and 42 MR tankers) with an average age of 2.2 years and time charters-in 16 product tankers (two LR2, one LR1, eight MR and five Handymax tankers). The Company has contracted for 10 newbuilding product tankers (eight MR and two LR2 tankers). The two LR2s are expected to be delivered in the first quarter of 2017 and the eight MRs are expected to be delivered throughout 2017 and the first quarter of 2018.

Source: Scorpio Tankers