Scorpio Tankers Inc. announced that it has received a Commitment Letter from a leading financial institution of $129 million (the Commercial Tranche) and a Letter of Intent (LOI) from The Export-Import Bank of Korea (KEXIM) of up to $300.6 million (the KEXIM Tranche) for a loan facility of up to $429.6 million (the KEXIM Credit Facility) that is being arranged by the Financial Institution.
The KEXIM Credit Facility would be used to finance up to 60% of the purchase price of newbuildings upon delivery. The Commercial Tranche matures in 2020 and the KEXIM Tranche matures in 2026 assuming the Commercial Tranche is refinanced through that date. The covenants are similar to those in the Company’s existing credit facilities, and the other terms and conditions of the loan are in accordance with OECD Guidelines.
The LOI from KEXIM is subject to KEXIM credit approval and executed documentation.
[mappress] Press Release, August 28, 2013