Monaco-based Scorpio Tankers has clinched a financing deal for 45 ships worth $1bn.
The New York-listed owner and operator of 113 tankers has tapped a group of banks to finance currently unencumbered vessels, or those financed through loans and financial leases, which carry higher margins.
The deal, expected to close in July, is structured around a 50% term loan and 50% revolving loan, with a final maturity of five years from the signing date not later than June 30, 2028, and bears interest at SOFR plus a margin of 1.95% per year.
The company will repay the loans in quarterly installments with a balloon payment due at maturity, where the term loan portion for each vessel will be repaid in full before the reduction of the revolving loan for each vessel.
The agreement offers Scorpio Tankers the ability to substitute vessels and also includes an uncommitted accordion feature of up to $200m, which may be incurred under the same terms and conditions no later than 24 months after the closing date.
“There is widespread confidence from market constituents on the persistence of current fundamentals, and the competitive structure, terms, and conditions of this new loan, particularly the revolving line of credit, are testament to that view as well as to the steps we have recently taken,” said Emanuele Lauro, chairman and CEO of Scorpio Tankers
