Scorpio Tankers Exercises Purchase Options on Eight Ships

Scorpio Tankers Inc. (NYSE:STNG) has exercised purchase options for eight tankers along with the repayment of a credit facility that will reduce the company’s debt.

Scorpio Tankers last week announced it has given notice to exercise its purchase options on one LR2 product tanker, named STI Alexis, and five MR product tankers (STI Duchessa, STI San Antonio, STI Mayfair, STI St. Charles, and STI Yorkville). The vessels were sold and leased back by Scorpio in the fourth quarter of 2018. The purchases, which are expected to take place in the fourth quarter of 2022, are expected to result in a debt reduction of $85.8 million.

Scorpio Tankers has also given notice to exercise its purchase options on two LR2 product tankers, named STI Steadfast and STI Supreme. The vessels were acquired as part of the acquisition of Navig8 Product Tankers Inc. in 2017. The purchases are expected to occur in 2023 will result in a debt reduction of about $55.6 million.

Scorpio Tankers says it has also given notice to repay a bilateral credit facility, which finances one LR2 product tanker, STI Madison, and has $17.5 million of outstanding debt. The credit facility is expected to be repaid in full within October 2022.

Read Next: Shipowners Expect Crude Tanker Rates to Stay Strong Despite Russia Turmoil

Subscribe for Daily Maritime Insights

Sign up for gCaptain’s newsletter and never miss an update

— trusted by our 109,089 members