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Scorpio Tankers secures new credit facility

Scorpio Tankers announced that (i) it has purchased its common shares in the open market, (ii) the President of the Company, Robert Bugbee, has purchased call options on the common shares of the Company, (iii) it has received a commitment for a new credit facility and (iv) the Company will participate in at least six investor events during the first quarter of 2023.

Purchase of Common Shares

Recently, the Company purchased 415,062 of its common shares in the open market at an average price of $51.35 per share as part of the Company’s securities repurchase program.

Purchase of Call Options by the President of the Company

The President of the Company, Robert Bugbee, has purchased call options on 400,000 common shares (or 4,000 call option contracts) of the Company with a strike price of $40.00 for total consideration of $4,408,000. The call option contracts have an expiration of April 2023.

New Credit Facility

The Company has received a commitment from a group of European financial institutions for a credit facility of up to $225.0 million. The credit facility will be used to finance 11 MR product tankers and two LR2 product tankers. The credit facility has a final maturity of five years from the signing date and bears interest at SOFR plus a margin of 1.975% per annum.

The terms and conditions, 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 within the first quarter of 2023.

The proceeds of this new facility are expected to be used to repay more expensive lease financing.

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