Scorpio Tankers Cuts $141.4m in Debt With Vessel Buybacks

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Mfame Editor
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Scorpio Tankers has exercised purchase options on eight ships and the repayment of a credit facility, reports an official release.

Purchase options on 8 ships

The company has given notice to exercise its purchase options on one LR2 product tanker called STI Alexis and five MR product tankers called STI Duchessa, STI San Antonio, STI Mayfair, STI St. Charles, and STI Yorkville. These vessels were sold and leased back by the company in the fourth quarter of 2018. The leases bear interest at LIBOR plus a margin of 3% per annum. The purchases, which are expected to occur before the end of the year, are expected to result in a debt reduction of $85.8m, the company said in a release.

In addition, Scorpio Tankers has given notice to exercise its purchase options on two LR2 product tankers called STI Steadfast and STI Supreme. These vessels were acquired as part of the acquisition of Navig8 Product Tankers in 2017. The leases bear interest at LIBOR plus a margin of 5.4% per annum. The purchases, which are expected to occur in 2023, are expected to result in a debt reduction of $55.6m.

The Monaco-based owner has given notice to repay a bilateral credit facility, which finances one LR2 product tanker and has $17.5m of outstanding debt.

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Source: Scorpio Tankers

1 COMMENT

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