The New York-listed owner and operator of 113 tankers has agreed with a group of banks to finance currently unencumbered vessels, and those financed through loans and financial leases, which carry higher margins, in a deal with a total value of $1 billion, reports.

The deal, expected to close in July, is structured around 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 bears interest at SOFR plus a margin of 1.95 percent per year, the maritime news website reports. A total of 45 ships are involved.

The company will repay the loans in quarterly instalments with a balloon payment due at maturity, where the term loan portion for each vessel will be repaid in full before the reduction of the revolving loan for each vessel. 

“There is widespread confidence from market constituents on the persistence of current fundamentals, and the competitive structure, terms, and conditions of this new loan, particularly the revolving line of credit, are testament to that view as well as to the steps we have recently taken,” said Emanuele Lauro, chairman and CEO of Scorpio Tankers.


PHOTO: Scorpio Tankers