Scorpio Tankers announced that it has received commitments from a group of financial institutions for a previously announced $1.0 billion term loan and revolving credit facility.

The Credit Facility, which was over-subscribed, was capped at an amount of $1.0 billion, and is expected to be used to finance 45 product tankers, which are currently unencumbered, or financed through credit facilities and financial leases which carry higher margins and will be repaid. The Credit Facility is expected to consist of a 50% term loan and a 50% revolving loan, has a final maturity of five years from the signing date (but not later than June 30, 2028), and bears interest at SOFR plus a margin of 1.95% per annum. A commitment fee of 0.78% per annum applies for any undrawn amounts. The Credit Facility is expected to be repaid in quarterly installments with a balloon payment due at maturity date, where the term loan portion for each vessel shall be repaid in full prior to the reduction of the revolving loan for each vessel. The Credit Facility offers the Company an ability to substitute vessels and also includes an uncommitted accordion feature of up to $200.0 million, which may be incurred under the same terms and conditions at no later than 24 months after the closing date. The other terms and conditions of the Credit Facility, including financial covenants, are similar to those set forth in the Company’s existing credit facilities. The Credit Facility is subject to customary conditions precedent and the execution of definitive documentation, and is expected to close in July 2023.

Mr. Emanuele Lauro, Chairman and CEO of the Company, commented “We appreciate our lenders and their commitment to the Company. There is widespread confidence from market constituents on the persistence of current fundamentals, and the competitive structure, terms, and conditions of this new loan, particularly the revolving line of credit, are testament to that view as well as to the steps we have recently taken.”