Scorpio Tankers Bags Sale and Leaseback Deals for Four More PCs
- Business & Finance
Product tanker owner and operator Scorpio Tankers Inc. has agreed to sell and leaseback four ships, in two separate transactions to an undisclosed international financial institution.
The ships in question involve two MR product tankers, STI Gramercy and STI Queens, and two LR2 product tankers, STI Oxford and STI Selatar.
As part of the deal, Scorpio will bareboat charter-in the vessels for a period of seven years.
The company has purchase options beginning at the end of the third year of each agreement. There is also a purchase obligation for each vessel upon the expiration of each agreement.
Scorpio expects its liquidity to be bolster by USD 42 million in aggregate after the repayment of outstanding debt.
The deal is part of a major plan revealed by the company in April 2018 to raise up to USD 334 million through a series of bank loans and sale leasebacks.
As part of the initiative, the company inked a sale and lease back deal for six MR product tankers with China Huarong Shipping Financial Leasing back in May.
During the same month, Scorpio announced commitments from four European banks for up to USD 195.9 million worth of loans and a sale and leaseback deals for five of its product tankers with AVIC International Leasing.