Monaco-based Scorpio Tankers is in talks of sealing up to $1bn in bank lending that would mainly be used to repay and re-finance more expensive lease financing, along with financing certain of the company’s unencumbered vessels.
Scorpio announced discussions with “a group of financial institutions for a term loan and revolving loan of up to the aggregate of $750.0 million to $1.0 billion. This facility is expected to bear interest at SOFR plus a margin of 1.95% per annum.”
“Furthermore, the credit facility is expected to consist of a 50% term loan and 50% revolving loan, have a final maturity of five years from the signing date (but not later than June 30, 2028), and bear interest at SOFR plus a margin of 1.95% per annum,” as the top management announces.
The proceeds of this facility are expected to mainly be used to repay and re-finance more expensive lease financing, along with financing certain of the company’s unencumbered vessels. However, the credit facility is subject to credit approval from the banks, customary conditions precedent, and negotiation and execution of definitive documentation.
It is worth mentioning that the shipowner explains that there is no assurance that the company will enter into the credit facility on the terms described by the company, which may be subject to change or at all.
The Emanuele A. Lauro-led company also had a net income of $193.2 million, or $3.40 basic and $3.27 diluted earnings per share, for the three months ended March 31, 2023, in accordance with the company´s financial report for the first quarter of this year.
The New-York listed company currently owns, lease finances or bareboat charters-in 113 product tankers (39 LR2 tankers, 60 MR tankers and 14 Handymax tankers) with an average age of 7.3 years.