Monaco-based Scorpio Tankers continues to reduce its debt by exercising more purchase options.

The Emanuele A. Lauro-led company has given notice to exercise its purchase options on one LR2 product tanker and five MR product tankers.

The deal includes the 2019-built LR2 product tanker STI Lobelia and five MR product tankers STI Magic, STI Mystery, STI Marvel, STI Mythic, and STI Magister also built in 2019.

The purchases are expected to occur in June 2023. This move will result in a debt reduction of $147.3 million for the company.

The owner of product tankers said the leases bear interest at LIBOR plus a margin of 3.50% per annum.

Recently, the company purchased 396,706 of its common shares in the open market, at an average price of $54.41 per share, as part of the company’s securities repurchase program.

The New-York listed company, which is a provider of marine transportation of petroleum products worldwide, currently owns, finance leases or bareboat charters-in 113 product tankers (39 LR2 tankers, 60 MR tankers and 14 Handymax tankers) with an average age of 7.2 years.