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Scorpio Tankers, Ocean Yield ink sale & leaseback deal for tanker duo

Monaco-based shipping company Scorpio Tankers has signed a sale and leaseback deal with Norwegian counterpart Ocean Yield for two long-range 2 (LR2) product tankers.

The ships in question are STI Gallantry and STI Guard, both built in 2016 and featuring a deadweight tonnage of 113,000.

The transaction has been valued at $70.2 million.

Upon completion, which is expected in December 2021, the company’s liquidity is expected to increase by $27.9 million in aggregate after the repayment of outstanding debt.

As part of the agreements, Scorpio will bareboat charter-in the vessels for a period of 10 years and will have purchase options beginning at the end of the fourth year of each agreement. There is also a purchase obligation for each vessel upon the expiration of each agreement.

The vessel pair is expected to be delivered to Ocean Yield during December 2021.

Including this investment, Ocean Yield will own six LR2 product tankers with long-term charters to Scorpio Tankers.

Scorpio Tankers currently owns, finance leases or bareboat charters-in 131 product tankers with an average age of 5.9 years.