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Scorpio Tankers seals new credit facilities, delays scrubber installations

Monaco-based Scorpio Tankers announced in its last quarterly report that it has obtained new finance from its banks.

The Emanuele Lauro-headed firm recently received commitments for a loan facility of up to $225m with a group of European financial institutions.

“This loan facility is expected to consist of a $150.0 million term loan facility and $75.0 million revolving credit facility. The proceeds of this new facility are expected to be used to refinance the existing debt on nine vessels, including four vessels that are currently financed under the existing ABN AMRO Credit Facility which is scheduled to mature in the third quarter of 2020,” the company specified. This loan is expected to close before June 30.

In the last few days Scorpio Tankers also executed an agreement to upsize its $179.2m credit facility with ING Bank N.V. to $251.4m. The upsized portion of the loan facility consists of a $40.6 million term loan facility and $31.5 million revolving credit facility.

“The proceeds of this upsized facility are expected to be used to refinance the existing debt on five vessels, which are currently financed under the KEXIM Credit Facility” the company said.

Also in its first quarter report, which reported a net income of $46.6m, Scorpio Tankers revealed that is has just “reached an agreement with its counterparty to postpone the purchase and installation of scrubbers on 19 of its vessels”. The installations are now expected to begin not earlier than 2021.

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Nicola Capuzzo

Nicola is a highly qualified journalist focused on transport economics, logistics and shipping with broad experience in both online and printed media. Specialties: shipping, ship finance, banking, commodities and port economics. He regularly interviews Europe's top shipowner executives for Maritime CEO magazine.
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