Scorpio Tankers will get new $21 million term loan and pay down debt

Chicago, Jan. 12 – Scorpio Tankers Inc. gave an update on recent financing activities on Tuesday, including a $21 million term loan and a sale-leaseback on four of its tankers, according to a press release.

The company’s $21 million term loan commitment with a December 2022 maturity comes from a European financial institution.

The terms and conditions, absent the maturity date, are similar to the company’s existing credit facilities.

Proceeds from the loan will be used to refinance the outstanding debt on an LR2 product tanker, STI Madison.

After the repayment of debt, the loan will increase the company’s liquidity by about $5 million.

Scorpio is also selling and leasing back three MR product tankers and one LR2 product tanker to AVIC International Leasing Co., Ltd.

Proceeds, after the repayment of outstanding debt, will increase the company’s liquidity by $32 million.

The lease arrangements are similar to the company’s other existing lease financing arrangements.

Monaco-based Scorpio is an oil tanker business.

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