Monaco-based shipowner Scorpio Tankers has agreed sale and leaseback deals for five of its product tankers with AVIC International Leasing.
The vessels in question are MR product tankers STI Ville, STI Fontvieille and STI Brooklyn, and two LR2 product tankers STI Rose and STI Rambla.
Upon completion, the company’s liquidity is expected to increase by USD 42 million in aggregate after the repayment of outstanding debt.
As part of the agreements, Scorpio Tankers will bareboat charter-in the vessels for a period of eight years. The company has purchase options beginning at the end of the second year of each agreement, as well as a purchase obligation for each vessel upon the expiration of each agreement.
The lease financing deals are part of the company’s new financing initiatives that were announced on April 25, 2018.
Scorpio Tankers earlier signed term sheets or agreed main terms for a series of bank loans and sale leasebacks to refinance certain of its outstanding secured indebtedness.
If finalized, these transactions would raise USD 334 million in aggregate of new liquidity after the repayment of the existing secured debt related to these vessels.