Scorpio Tankers Announces Sale and Leaseback Agreements for Six MR Product Tankers
June 05 2018 - 4:15PM
Scorpio Tankers Inc. (NYSE:STNG) (“Scorpio Tankers” or the
“Company”) announced today that it has agreed to sell and leaseback
six MR product tankers (STI Battery, STI Milwaukee, STI Tribeca,
STI Bronx, STI Manhattan, and STI Seneca) to CMB Financial Leasing
Co., Ltd. Upon completion, the Company’s liquidity is expected to
increase by $52 million in aggregate after the repayment of
outstanding debt. These lease financing arrangements are part
of the Company’s new financing initiatives that were announced on
April 25, 2018.
As part of the agreements, the Company will
bareboat charter-in the vessels for a period of eight years. In
addition, the Company has purchase options beginning at the start
of the fourth year of each agreement. There is also a
purchase obligation for each vessel upon the expiration of each
agreement.
These lease financing arrangements are subject
to customary 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 2.8 years and time or bareboat charters-in
17 product tankers (two LR2 tankers, eight MR tankers and seven
Handymax tankers).
Forward-Looking Statements
Matters 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 the Company’s 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 the Company’s 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 the Company’s 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 the Company, 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 the Company’s
operating expenses, including bunker prices, drydocking and
insurance costs, the market for the Company’s 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.
Contact Information
Scorpio Tankers Inc.
(212) 542-1616
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