Scorpio Tankers boosts liquidity with four-ship sale and leaseback deal

Tanker owner and operator Scorpio Tankers has decided to sell and lease back three MR product tankers and one LR2 product tanker to China’s AVIC International Leasing.

The deal includes the three 50,000 dwt units — STI Memphis, STI Soho, STI Osceola — and the 110,000 dwt tanker STI Lombard.

Upon completion, the company’s liquidity is expected to increase by about $32 million in aggregate after the repayment of outstanding debt, Scorpio Tankers said.

The lease financing arrangements are subject to certain conditions.

What is more, the company said it received a commitment from a European financial institution for a $21 million term loan facility to refinance the outstanding debt on an LR2 product tanker, STI Madison. The loan facility, subject to relevant conditions, will mature in December 2022.

Upon completion, the company’s liquidity is expected to increase by about $5 million after the repayment of outstanding debt.

Scorpio Tankers’ fleet comprises 135 owned, finance leased or bareboat chartered-in product tankers with an average age of 5.2 years.