Scorpio Tankers has continued to refinance its fleet and build liquidity with another sale-and-leaseback deal.
The New York-listed company said three MR tankers and an LR2 have gone to AVIC International Leasing of China in a transaction that adds $32m in cash after debts are paid off.
The ships involved are the 50,000-dwt STI Memphis and STI Soho (both built 2014) and STI Osceola (built 2015), and 110,000 STI Lombard (built 2015).
Scorpio also announced a commitment from an unnamed European financial institution for a $21m term loan facility to refinance the outstanding debt on an LR2 product tanker, the 110,000-dwt STI Madison (built 2014).
The loan matures in December 2022 and adds $5m in extra liquidity.
Baby bonds coming
On Tuesday, Scorpio positioned itself to tap a new source of liquidity with a $75m expansion of an existing "baby bonds" programme.
The move, announced in a securities filing, allows the world's largest product tanker owner to sell five-year notes due in 2025 at times of its choosing. The move is effectively a bond version of the "at the market" share issuances popular with shipowners.
Monaco-based Scorpio did not say whether or how quickly it intends to issue more notes, but market sources said they expect at least a portion of the allotment would be sold in the near term.
The company’s fleet consists of 135 owned, finance leased or bareboat chartered-in product tankers.
In September, Scorpio added another $82m in liquidity through sale and leasebacks and a new loan.
The company sealed the disposal and charter-back of eight MRs in a transaction with three financial institutions.
