Scorpio Tankers announced the execution of an agreement to upsize its previously announced $52 million credit facility with ING Bank to $87 million.
The credit facility will be used for three purposes.
- To finance a portion of the purchase price of two LR2 product tankers currently under construction at Daehan Shipbuilding, with expected deliveries in the first and second quarters of 2016,
- To partially finance the purchase of STI Black Hawk, and
- To refinance the existing indebtedness on an MR product tanker that was delivered in March 2015.
The loan facility has a final maturity of seven years from the original date of signing of June 24, 2015 and bears interest at LIBOR plus a margin of 1.95% per annum. The terms and conditions, including covenants, are similar to those in the company’s existing credit facilities.