Scorpio Tankers gets commitments for $1 billion term loan, revolver

By Marisa Wong

Los Angeles, June 27 – Scorpio Tankers Inc. has received commitments from a group of financial institutions for a previously announced $1 billion term loan and revolving credit facility, according to a Tuesday press release.

The credit facility, which was oversubscribed, was capped at $1 billion and is expected to be used to finance 45 product tankers, which are currently unencumbered or financed through credit facilities and financial leases, which carry higher margins and will be repaid.

The credit facility is expected to consist of a 50% term loan and a 50% revolving loan, has a final maturity of five years from the signing date, but not later than June 30, 2028, and bears interest at SOFR plus a margin of 195 basis points. A commitment fee of 78 bps applies for any undrawn amounts.

The credit facility is expected to be repaid in quarterly installments with a balloon payment due at maturity, whereas the term loan portion for each vessel will be repaid in full prior to the reduction of the revolving loan for each vessel.

The facility allows the company to substitute vessels and also includes an uncommitted accordion feature of up to $200 million, which may be incurred under the same terms and conditions at no later than 24 months after the closing date.

The other terms and conditions, including financial covenants, are similar to those under the company’s existing credit facilities.

The credit facility is expected to close in July.

Monaco-based Scorpio is an oil tanker business.

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