Monaco-based tanker owner Scorpio Tankers has received an approval for a loan of up to USD 300 million from ABN AMRO Bank N.V., Nordea Bank Finland plc, acting through its New York branch, and Skandinaviska Enskilda Banken AB.
According to the company, the loan, which will be used to refinance the existing indebtedness on 16 MR product tankers, has a final maturity of five years from the first drawdown date and bears interest at LIBOR plus a margin of 2.50% per annum.
The loan will be comprised of a term loan up to USD 200 million and a revolver up to USD 100 million, and the availability can be used to finance up to 60% of the fair market value of the respective vessels, Scorpio Tankers said.
The new debt is subject to customary conditions precedent and the execution of definitive documentation.
Scorpio Tankers’ net income for the first quarter of 2016 dropped to USD 28 million, compared to a net income of USD 40.7 million reported in the corresponding period in 2015.
The company added that its vessel revenue for the period reached USD 165.1 million, while it was at USD 160.7 million in the first quarter of 2015.
Scorpio Tankers currently owns 77 product tankers with an average age of 1.7 years and time charters-in 12 product tankers. The company has contracted for 10 newbuilding product tankers.