New York-listed tanker owner Scorpio Tankers Inc. has upsized its previously announced USD 87 million credit facility with ING Bank N.V. to USD 132.5 million.
The facility will bear interest at LIBOR plus a margin of 1.95% per annum, the company revealed.
Scorpio plans to use the proceeds to partially finance the purchase of crude oil tanker built in 2015, the STI Lombard, which is currently bareboat chartered-in.
In addition, the loan will also be used to refinance the existing indebtedness on an undisclosed MR product tanker, also built in 2015.
Scorpio has been busy over the last couple of months with securing finances for its newbuilds. At the end of November, the company received a commitment for a loan facility of up to USD 36 million.
The loan facility will be directed to refinance the existing indebtedness on one 2015-built LR2 product tanker.
Scorpio Tankers currently owns 79 product tankers with an average age of 1.3 years and time or bareboat charters-in 11 product tankers.
The company has contracted for 12 newbuilding product tankers, eight MR and four LR2 tankers. The four LR2s are expected to be delivered in 2016 and the eight MRs are expected to be delivered throughout 2017.