Scorpio Tankers Inc. Announces Commitments for New Loan Facilities
May 01 2018 - 4:22PM
Scorpio Tankers Inc. (NYSE:STNG) ("Scorpio Tankers," or the
"Company") today announced that, following from the announcement of
new financing initiatives on April 25, 2018, the Company has
received commitments from four leading European financial
institutions for three separate loan facilities of up to $195.9
million in aggregate, which will raise $53.9 million of new
liquidity in aggregate after the repayment of $142.0 million of
existing secured debt. The Company expects to make
announcements for further individual transactions in the coming
weeks.
The Company has received a commitment from ABN
AMRO Bank N.V. and Skandinaviska Enskilda Banken AB for a loan
facility of up to $120.6 million. The loan facility will be used to
finance up to 65% of the fair market value of one Handymax product
tanker, one MR product tanker and three LR2 product tankers. The
loan facility has a final maturity of five years from the first
drawdown date, bears interest at LIBOR plus a margin of 2.60% per
annum, and is subject to customary conditions precedent and the
execution of definitive documentation.
The Company has also received a commitment to
upsize its previously announced $132.5 million credit facility with
ING Bank N.V. to $171.2 million. The upsized portion of the loan
facility will be used to finance up to 65% of the fair market value
of one Handymax product tanker and one MR product tanker. The
upsized portion of the loan facility has a final maturity of June
2022, bears interest at LIBOR plus a margin of 2.40% per annum, and
is subject to customary conditions precedent and the execution of
definitive documentation.
Furthermore, the Company has also received a
commitment from a leading European financial institution for a loan
facility of up to $36.7 million. The loan facility will be used to
finance two MR product tankers. The loan facility has a final
maturity of June 2021, bears interest at LIBOR plus a margin of
2.50% per annum, and is subject to certain conditions precedent and
the execution of definitive documentation.
About Scorpio Tankers
Inc.Scorpio Tankers is a provider of marine transportation
of petroleum products worldwide. The Company currently owns or
finance leases 109 product tankers (38 LR2 tankers, 12 LR1 tankers,
45 MR tankers and 14 Handymax tankers) with an average age of 2.7
years and time or bareboat charters-in 19 product tankers (two LR2
tankers, nine MR tankers and eight Handymax tankers).
Forward-Looking
StatementsMatters discussed in this press release may
constitute forward-looking statements. The Private Securities
Litigation Reform Act of 1995 provides safe harbor protections for
forward-looking statements in order to encourage companies to
provide prospective information about their business.
Forward-looking statements include statements concerning plans,
objectives, goals, strategies, future events or performance, and
underlying assumptions and other statements, which are other than
statements of historical facts. Scorpio Tankers desires to take
advantage of the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995 and is including this cautionary
statement in connection with this safe harbor legislation. The
words “believe,” “expect,” “anticipate,” “estimate,” “intend,”
“plan,” “target,” “project,” “likely,” “may,” “will,” “would,”
“could,” and similar expressions identify forward-looking
statements.
The forward-looking statements in this press
release are based upon various assumptions, many of which are
based, in turn, upon further assumptions, including without
limitation, management’s examination of historical operating
trends, data contained in company records and other data available
from third parties. Although management believes that these
assumptions were reasonable when made, because these assumptions
are inherently subject to significant uncertainties and
contingencies which are difficult or impossible to predict and are
beyond the company’s control, there can be no assurance that
Scorpio Tankers will achieve or accomplish these expectations,
beliefs or projections. The Company undertakes no obligation, and
specifically declines any obligation, except as required by law, to
publicly update or revise any forward-looking statements, whether
as a result of new information, future events or otherwise.
In addition to these important factors, other
important factors that, in our view, could cause actual results to
differ materially from those discussed in the forward-looking
statements include, unforeseen liabilities, future capital
expenditures, revenues, expenses, earnings, synergies, economic
performance, indebtedness, financial condition, losses, future
prospects, business and management strategies for the management,
expansion and growth of our operations, risks relating to the
integration of the operations of Navig8 Product Tankers Inc.
(“NPTI”) and the possibility that the anticipated synergies and
other benefits of the acquisition of NPTI will not be realized or
will not be realized within the expected timeframe, the outcome of
any legal proceedings related to the merger with NPTI and the
related transactions, the failure of counterparties to fully
perform their contracts with us, the strength of world economies
and currencies, general market conditions, including fluctuations
in charter rates and vessel values, changes in demand for tanker
vessel capacity, changes in our operating expenses, including
bunker prices, drydocking and insurance costs, the market for our
vessels, availability of financing and refinancing, charter
counterparty performance, ability to obtain financing and comply
with covenants in such financing arrangements, changes in
governmental rules and regulations or actions taken by regulatory
authorities, potential liability from pending or future litigation,
general domestic and international political conditions, potential
disruption of shipping routes due to accidents or political events,
vessels breakdowns and instances of off-hires, and other factors.
Please see Scorpio Tankers’ filings with
the U.S. Securities and Exchange Commission for a more
complete discussion of certain of these and other risks and
uncertainties.
Scorpio Tankers Inc.212-542-1616
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