Scorpio Tankers Inc. announces a Commitment Letter and Letter of Intent for a $429.6 million loan facility
Scorpio Tankers Inc. announced today that it has received a Commitment Letter from a leading financial institution of $129 million and a Letter of Intent from The Export-Import Bank of Korea of up to $300.6 million (the KEXIM Tranche) for a loan facility of up to $429.6 million that is being arranged by the Financial Institution, said in the company's press release.
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 Scorpio Tankers's existing credit facilities, and the other terms and conditions of the loan are in accordance with OECD Guidelines.
Scorpio Tankers also announced that the underwriters in its previously announced public offering of 20,000,000 common shares exercised their over-allotment option to purchase 3,000,000 additional common shares at the offering price of $9.50 per share. Scorpio Tankers received net proceeds of approximately $209.6 million, after deducting underwriters' discounts and offering expenses from the follow-on offering and the exercise of the over-allotment option. Scorpio Tankers has a total of 187,656,424 shares of common stock issued and outstanding.
Scorpio Tankers has agreed to time charter-in two Handymax product tankers consisting of:
A Handymax product tanker (37,412 dwt, 2007 built) for one year at approximately $12,500 per day. Scorpio Tankers also has the option to extend the charter for an additional year at $13,250 per day. This vessel is expected to be delivered prior to the middle of October 2013.
A Handymax product tanker (37,455 dwt, 2007 built) for eighteen months at approximately $12,500 per day. Scorpio Tankers also has the option to extend the charter for an additional year at $13,500 per day. This vessel is expected to be delivered prior to the middle of October 2013.
About Scorpio Tankers Inc.
Scorpio Tankers Inc. is a provider of marine transportation of petroleum products worldwide. Scorpio Tankers Inc. currently owns 18 tankers (one LR2 tanker, four LR1 tankers, one Handymax tanker, 11 MR tankers, and one post-Panamax tanker) with an average age of 4.0 years, time charters-in 29 product tankers (eight LR2, four LR1, eight MR and nine Handymax tankers), and has contracted for 60 newbuilding vessels (25 MR, 12 LR2, and 14 Handymax ice class-1A product tankers, and 9 VLGC), one of which is expected to be delivered to Scorpio Tankers by September 2013, 40 within 2014 and the remaining 19 by the end of 2015.
