Scorpio Tankers secures loans to fund purchase of four LR2s

Scorpio Tankers secures loans to fund purchase of four LR2s

London: NYSE-listed Scorpio Tankers has secured loans of $52m and $61.2m to partially fund its purchase of four LR2 product tankers agreed in December 2014.

The $52m loan facility will go towards the cost of two 110,000-dwt LR2s currently under construction at Daehan Shipbuilding in South Korea. The two tankers are expected for delivery in Q1 2016 and Q2 2016 respectively.

The $61.2m loan will be used in part to finance the purchase of two 110,000-dwt LR2s being built at South Korea’s Sungdong Shipbuilding & Marine Engineering. Deliveries are expected in Q2 2016 and Q3 2016 respectively.

Scorpio says the loans were secured from two “European financial institutions” but didn’t give further details.

The $52m loan facility has a final maturity of seven years from the date of signing, with interest at LIBOR plus a margin of 1.95% per annum, Scorpio says. The $61.2m loan facility has a final maturity of five years from the date of delivery of each vessel and bears interest at LIBOR plus a margin ranging between 1.95% and 2.40% per annum (depending on the advance ratio).

Holly Birkett

Holly is Splash's Online Editor and correspondent for the UK and Mediterranean. She has been a maritime journalist since 2010, and has written for and edited several trade publications. She is currently studying for membership of the Institute of Chartered Shipbrokers. In 2013, Holly won the Seahorse Club's Social Media Journalist of the Year award. She is currently based in London.

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