Scorpio Tankers has entered into agreements to sell 14 vessels (two MRs and 12 LR1s).
Specifically, the Company has entered into agreements to sell two MRs (2013 built STI Fontvieille and 2019 built STI Majestic) and 12 LR1s.
The sale prices of STI Fontvieille, STI Majestic, and the 12 LR1s are $23.5 million, $34.9 million, and $413.8 million, respectively. The Company is expected to raise additional liquidity of approximately $189 million from these transactions, which are expected to close in the first and second quarters of 2022.
Separately, the Company is in discussions with a financial institution to further increase its liquidity by up to $27.0 million in connection with the refinancing of four vessels, which along with the aforementioned vessel sales are expected to increase the Company’s liquidity by approximately $216 million.
Using the latest publicly reported cash balance of $228.9 million on November 10, 2021 (reported in the November 11, 2021 press release), and adding (i) the additional liquidity raised on all of the financing transactions that have closed (see December 13, 2021 press release), (ii) the additional liquidity that is expected to be raised from financing transactions that are in discussions, and (iii) the liquidity from the sale of the 14 vessels, the Company’s pro forma liquidity is $477.9 million.
Emanuele Lauro, Chairman and Chief Executive Officer commented, “These sales confirm that our NAV (net asset value) is substantially above the current STNG share price. The fundamentals are improving, and the additional liquidity gives us increased flexibility and security to create shareholder value.
“After the scheduled sale of the vessels, we have limited debt maturities in 2022, the convertible bonds for $69.7 million, which we are preparing to pay off with cash, and one credit facility for $16.9 million, which we plan on refinancing.”