Scorpio Tankers has scored financing for four of its vessels, with Germany’s DekaBank Deutsche Girozentrale offering a $94m credit facility.
The deal continues a period of financial reshuffling by Scorpio that has seen the shipowner buy back a string of vessels off financial leases and cut $1.2bn in debt in 2022 alone.
Frankfurt-headquartered DekaBank committed to providing financing for one MR product tanker and a trio of LR2s, the New York-listed tanker owner said.
The credit facility will mature in five years.
Monaco-headquartered Scorpio will pay a margin of 1.7% over the Secured Overnight Financing Rate, which is a key interest rate for US Treasury securities that currently stands at 5.5%.
Scorpio said the terms and conditions of the credit facility are similar to its other financing arrangements.
The deal is expected to close in the third quarter of this year.
In its debt-cutting campaign, Emanuele Lauro-led Scorpio exercised purchase options on five MR tankers in May that took them off leases with interest rates amounting to a margin of 3.5% over Libor, which stands at 5.19% today.
As it reaps the rewards of a strong product tanker market, Scorpio has also been spending its cash on buying up its own shares.
The company reported snapping up $39.8m in shares earlier this month as it reset its repurchase programme to $250m.
Scorpio controls a fleet of 113 product tankers through ownership, lease financing or bareboat charters.
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