Scorpio Tankers, with its HQ in Monaco, is lining up a new financing deal of up to $1 billion that would enable it to repay and re-finance more expensive lease financing, along with financing certain of its unencumbered vessels, reports.

The owner and operator of 113 product tankers has revealed talks with a group of financial institutions for a term loan and revolving loan of between $750 million and $1 billion.

The marine news website says that the deal consists of a 50 percent term loan and 50 percent revolving loan, with a final maturity of five years from the signing date not later than June 30, 2028, and is expected to bear interest at SOFR plus a margin of 1.95 percent per annum.

The New York-listed company netted $193.2 million in the first quarter, had also earlier executed or received commitments for three separate refinancing deals of up to $391.5m in aggregate. These facilities are expected to be collateralised by 22 vessels and bear interest at SOFR plus margins of between 1.90 and 1.975 percent per annum. Reportedly $274.1 million has so far been drawn from two of these facilities.

PHOTO: Scorpio Tankers