Scorpio Tankers says four European banks will provide $195.9m in loans as part of a sweeping refinancing deal.
The loans are the first leg in a series of liquidity measures the New York-listed company announced last week. Scorpio will use a combination of bank loans, leasebacks and refinancing to add $334m in new liquidity.
The first tranche will raise $53.9m new liquidity in aggregate after the repayment of $142m of existing secured debt.
ABN AMRO and Skandinaviska Enskilda Banken will team up on a loan facility of up to $120.6m.
The loan facility will be used to finance up to 65% of the fair market value of one handymax product tanker, one medium-range product tanker and three long-range 2 product tankers.
The loan has a final maturity of five years from the first drawdown date, bears interest at LIBOR plus a margin of 2.60% per annum, and is subject to customary conditions precedent and the execution of definitive documentation.
ING Bank also plans to add another $38.7m to a previously announced $132.5m credit facility.
The upsized portion of the loan facility will be used to finance up to 65% of the fair market value of one handymax product tanker and one MR product tanker.
The upsized portion of the loan facility has a final maturity of June 2022, bears interest at LIBOR plus a margin of 2.40% per annum.
One unidentified bank will also provide a loan facility of up to $36.7m. The loan facility will be used to finance two MR product tankers. The loan facility has a final maturity of June 2021, bears interest at LIBOR plus a margin of 2.50% per annum.
Further transactions will be announced in the coming weeks, Scorpio said.
