The company has received a commitment from a group of European financial institutions for a credit facility of up to $225 million. The facility will be used to finance 11 MR product tankers and two LR2 product tankers.

The credit facility has a final maturity of five years from the signing date and bears interest at SOFR plus a margin of 1.975 percent per annum, the company said

The terms and conditions, including financial covenants, are similar to those in the company’s existing credit facilities. The credit facility is expected to close within the first quarter of 2023.

The proceeds of the new facility are expected to be used to repay more expensive lease financing, Scorpio Tankers said.

Meanwhile, company president Robert Bugbee has purchased call options on 400,000 common shares (or 4,000 call option contracts) of the company with a strike price of $40.00 for a total consideration of $4,408,000. The call option contracts have an expiration of April 2023.

Recently Scorpio Tankers purchased 415,062 of its common shares in the open market at an average price of $51.35 per share as part of the company’s securities repurchase program.