Scorpio Secures Commitment Of USD 195 mn From European Companies

Scorpio Secures Commitment Of USD 195 Mn From European Companies

Times are good for Scorpio a Monaco-based tanker owner who have managed to get commitments of USD 195.9 million worth of loans from four European banks.

A whopping amount of USD 53.9 million would be provided via three separate loan facilities, of new liquidity in aggregate after the repayment of USD 142 million of existing secured debt.

At the end of April, this deal was announced as part of Scorpio’s major refinancing campaign via a series of bank loans and sale-leasebacks, targeting USD 334 million

A few individual transactions, further, are expected to be announced by the owners of the Scorpio in the coming weeks

To name a few, the banks who have committed to provide the loans to Scorpio owners include ABN AMRO Bank N.V. and Skandinaviska Enskilda Banken AB who are about to give a loan facility of up to USD 120.6 million.

The long-term plans of the Scorpio tanker owners are to use the loan to finance up to 65% of the market value of one Handymax, three LR2 product tankers, and one MR.

The company also received a commitment to upsize its USD 132.5 million credit facility with ING Bank N.V. to USD 171.2 million. The upsized portion of the loan is to be used to cover 65% of the market value of one Handymax and one MR product tanker.

Furthermore, an unnamed European financial institution committed to secure a loan of up to USD 36.7 million, aimed at financing two MR product tankers.

All loans are subject to the execution of definitive documentation.

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