Scorpio gets financing commitments to increase liquidity by $82 million

By Taylor Fox

New York, Sept. 25 – Scorpio Tankers Inc. expects to increase liquidity by $82 million, having finalized commitments from three financial institutions for the sale and leaseback of eight medium-range (MR) product tankers and having received a new commitment for a scrubber financing facility, according to a news release.

Under the sale and leaseback facilities, two of the eight vessels have been delivered to their buyer, and the remaining six are expected to be delivered in the fourth quarter of 2020.

Upon completion of the transaction for the eight vessels and the repayment of existing debt, Scorpio expects to have raised $70 million of liquidity.

The lease financing arrangement is a result of leasing discussions announced in August.

Scorpio also received a new commitment of $12 million to finance scrubbers on six MR tankers.

Including this new financing arrangement, Scorpio expects to raise $66 million of additional liquidity, after the repayment of existing debt, once all of the scrubber financing agreements are closed and drawn.

These drawdowns are expected to occur at varying points in the future as several of these financings are tied to scrubber installations on the Scorpio’s vessels.

Scorpio is a Monaco-based shipping company that operates oil tankers.

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