Scorpio Tankers Inc. (Scorpio Tankers) said that it has received commitments from a group of financial institutions for a revolving loan of up to $500.0 million (the “Revolving Credit Facility”).
The Revolving Credit Facility is a 100% revolving loan, which has a final maturity of seven years from the signing date and gives the Company the flexibility to draw down or repay the loan during the loan tenor. The Revolving Credit Facility is expected to bear interest at SOFR plus a margin of 1.85% per annum and a commitment fee of 0.74% per annum applies for any undrawn amounts. The Revolving Credit Facility is expected to be collateralized by 26 product tankers, which are currently unencumbered, and is expected to amortize/reduce in quarterly installments (starting after the second anniversary of the signing date) with a balloon payment due at maturity date. The Revolving Credit Facility offers the Company an ability to substitute vessels and also includes an uncommitted accordion feature of up to $100.0 million, which may be incurred under the same terms and conditions at no later than 24 months after the signing date.
The other terms and conditions of the Revolving Credit Facility, including financial covenants, are similar to those set forth in the Company’s existing credit facilities. The Revolving Credit Facility is subject to customary conditions precedent and the execution of definitive documentation, and is expected to close within the first quarter of 2025.
About Scorpio Tankers Inc.
Scorpio Tankers Inc. is a provider of marine transportation of petroleum products worldwide. Scorpio Tankers Inc. currently owns or lease finances 100 product tankers (39 LR2 tankers, 47 MR tankers and 14 Handymax tankers) with an average age of 8.7 years. The Company has entered into an agreement to sell one of its MRs, which is expected to close in the fourth quarter of 2024. Additional information about the Company is available at the Company’s website www.scorpiotankers.com, which is not a part of this press release.