Monaco-based tanker owner and operator Scorpio Tankers Inc has announced an agreement for taking delivery of two newbuildings and selling the oldest tanker in the fleet.

The Company reached an agreement to sell its 2007 built Handymax product tanker, STI Highlander, for approximately $19.35 million. The sale of this vessel is expected to close in October 2015. There will be no debt repayment associated with this sale as this vessel is not collateralized under any of the Company's credit facilities. Subsequent to the sale of STI Highlander, all of the Company's owned fleet will have been built in 2012 or later.

Scorpio Tankers Adds Two Newbuildings and Sells One Handymax tanker

Image: Wolfgang Berthel

Scorpio Tankers took delivery of two newbuilding product tankers in September 2015 - STI Carnaby and STI Black Hawk.

STI Carnaby is an LR2 product tanker, delivered from Sungdong Shipbuilding & Marine Engineering Co., Ltd. Upon delivery, this vessel began a voyage for 53 days at approximately $41,000 per day.

STI Black Hawk, an MR product tanker, was delivered from Hyundai Mipo Dockyard Co. Ltd. of South Korea. Upon delivery, this vessel began a voyage in the Scorpio MR Pool for 13 days at approximately $31,000 per day.

In September 2015, the Company executed an agreement to upsize its previously announced $52.0 million credit facility with ING Bank N.V. to $87.0 million.

The credit facility will be used to finance a portion of the purchase price of two LR2 product tankers currently under construction at Daehan Shipbuilding Co., Ltd., with expected deliveries in the first and second quarters of 2016, partially finance the purchase of STI Black Hawk, and refinance the existing indebtedness on an MR product tanker that was delivered in March 2015.

The loan facility has a final maturity of seven years from the original date of signing of June 24, 2015 and bears interest at LIBOR plus a margin of 1.95% per annum. The terms and conditions, including covenants, are similar to those in the Company's existing credit facilities.

Source: scorpiotankers.com