STNG in for Seven More VLCCs

Scorpio Tankers Inc. has entered into agreements with Daewoo Shipbuilding and Marine Engineering Co., Ltd and Hyundai Samho Heavy Industries for the construction of seven (very large crude carriers) VLCCs for an aggregate price of approximately $652.5 million.

One vessel is scheduled for delivery in the third quarter of 2015, two in the fourth quarter of 2015, two in the first quarter of 2016 and two in the fourth quarter of 2016.

Scorpio also reached an agreement with an unaffiliated third party to issue shares in exchange for the transfer of ownership to the company of four MR product tankers currently under construction in South Korea.

The purchase price of the four vessels, in aggregate, is approximately $154 million. One vessel is expected to be delivered in the third quarter of 2014 and the remaining three are expected to be delivered in the first quarter of 2015.

These vessels are similar to the company’s newbuildings that are also under construction at the same shipyard.

Approximately 20% of the total purchase price for the vessels will consist of newly issued common shares of the company having a valuation based on the fair market value of the shares at the time of issuance. The new common shares will be issued to affiliates of York Capital and the remainder of the purchase price will be paid to the shipyard from cash-on-hand and bank debt.

 

Press Release, December 4, 2013

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Posted on December 4, 2013

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