Benzinga | Sep 25, 2020 05:43AM EDT

Scorpio Tankers Announced Update on Financing Activities, Sale and Leaseback Facilities

Scorpio Tankers Inc. (NYSE:STNG) announced an update on financing facilities, which are expected to increase liquidity by approximately $82.0 Million. The Company has finalized commitments from three financial institutions for the sale and leaseback of eight MR product tankers that were previously mentioned and has received a new commitment for a scrubber financing facility.

Sale and Leaseback Facilities

Two of the eight vessels have already been delivered to their buyer, and the remaining six vessels are expected to be delivered to their buyers in the fourth quarter of 2020.

Upon completion of all the transactions for the eight vessels and the repayment of their existing debt, the Company expects to have raised approximately $70 million of liquidity in aggregate. These lease financing arrangements are the result of leasing discussions announced in our Earnings Press Release of August 6, 2020.

Scrubber Financing Facilities

In addition, the Company has received a new commitment of $12.0 million to finance scrubbers on six MRs of which, five have been installed to date. Including this new financing arrangement, the Company expects to raise approximately $66 million of aggregate additional liquidity (after the repayment of existing debt) once all of the previously announced scrubber financing agreements are closed and drawn. These drawdowns are expected to occur at varying points in the future as several of these financings are tied to scrubber installations on the Company's vessels.

The facilities that have not been finalized are subject to customary conditions precedent and execution of definitive documentation.