Scorpio Tankers plans to raise $334 million to pay off existing debt

By Devika Patel

Knoxville, Tenn., April 25 – Scorpio Tankers Inc. has signed term sheets or agreed main terms for a series of bank loans and sale leasebacks to refinance certain of its outstanding secured debt.

These transactions, if completed, would be expected to raise $334 million of new liquidity after repaying the existing secured debt.

“The company has signed term sheets for agreed main terms for a series of bank loans and sale leasebacks to refinance certain of its outstanding secured indebtedness,” chairman, director, and chief executive officer Emanuele A. Lauro said on the company’s first quarter ended March 31 earnings conference call on Wednesday.

“These transaction, if consummated, would be expected to raise $334 million of liquidity after the repayment of the existing secured debt related to the specific vessels,” he said.

The deals will be announced soon and the company is pleased that the lenders recognize the company’s strong position.

“We expect to make a detailed announcement for the individual transactions in the coming weeks,” Lauro said.

“As a management team, we are pleased to notice that, in an era of financial repression in shipping, our capital providers recognize, as we do, that Scorpio Tankers is positioned as a winner in this space,” he said.

The CEO would not provide more details but said he is pleased with its relationships with its lenders and the pricing it expects to procure.

“Whilst we will not be able to expand to a great extent on the important measures we are taking to enhance liquidity and financial flexibility, we are comfortable to say that we continue to enjoy and expand supportive relationships with top tier lenders and competitive pricing,” Lauro said.

“The company continuously evaluates potential financing transactions that it believes will enhance shareholder value and are in the best interest of the company, including the repayment or refinancing of its existing indebtedness,” he said.

As of March 31, 2018, the company had $163,379,000 in cash and cash equivalents, compared to $186,462,000 as of Dec. 31, 2017.

The company had $1,912,627,000 of long-term debt as of March 31, 2018, compared to $1,937,018,000 as of Dec. 31, 2017.

Scorpio Tankers is a Monaco-based oil tanker business.

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