Scorpio Tankers Inc. announces 16 newbuilding agreements and $525 mln in commitments to the 2013 credit facility
Scorpio Tankers Inc. announced today that it has reached agreements with five shipyards in Korea to construct 16 newbuilding vessels consisting of eight LR2, four MR, and four Handymax ice class-1A product tankers. In addition, the company announced that syndication of the company's previously announced $267 million Credit Facility has been heavily over-subscribed resulting in an increase of the overall commitments received from new and existing financial institutions to $525 million, said in the company's press release.
Emanuele Lauro, chief executive officer and chairman of the board, commented, "These 16 orders for fuel efficient vessels, and, as significantly, the over-subscription of our 2013 credit facility, have solidified our unique position in front of an improving cycle in product tankers. We are pleased that our shareholders and lenders alike are showing their support of our strategy.
"Furthermore, we are observing attenuated capacity at quality shipyards, meaning that prices have moved up 8-12% and expected deliveries for new orders are moving beyond 2015. Under these circumstances, we have no plans for further newbuilding contracts."
About Scorpio Tankers Inc.
Scorpio Tankers Inc. is a provider of marine transportation of petroleum products worldwide. Scorpio Tankers Inc. currently owns 15 tankers (one LR2 tanker, four LR1 tankers, one Handymax tanker, eight MR tankers, and one post-Panamax tanker) with an average age of 4.4 years, time charters-in 25 product tankers (seven LR2, three LR1, eight MR and seven Handymax tankers), and has contracted for 54 newbuilding product tankers (26 MR, 16 LR2 and 12 Handymax ice class-1A vessels), four of which are expected to be delivered to the Company by September 2013, 38 within 2014 and the remaining 12 by the second quarter of 2015.
