NYSE-listed Scorpio Tankers received commitments from a group of financial institutions for a revolving loan of up to $500.0 million. The Revolving Credit Facility is a 100% revolving loan, which has a final maturity of seven years from the signing date and gives the shipowner the flexibility to draw down or repay the loan during the loan tenor.
The Revolving Credit Facility is expected to bear interest at SOFR plus a margin of 1.85% per annum and a commitment fee of 0.74% per annum applies for any undrawn amounts. The Revolving Credit Facility is expected to be collateralized by 26 product tankers, which are currently unencumbered, and is expected to amortize/reduce in quarterly installments (starting after the second anniversary of the signing date) with a balloon payment due at maturity date.
The Revolving Credit Facility offers the Monaco-headquartered company an ability to substitute vessels and also includes an uncommitted accordion feature of up to $100.0 million, which may be incurred under the same terms and conditions at no later than 24 months after the signing date.
The other terms and conditions of the Revolving Credit Facility, including financial covenants, are similar to those set forth in the company’s existing credit facilities. The Revolving Credit Facility is subject to customary conditions precedent and the execution of definitive documentation, and is expected to close within the first quarter of 2025.
Emanuele A. Lauro, Scorpio Tankers CEO & Director (Image credit: Scorpio Tankers)
For the three months ended September 30, 2024, the company had net income of $158.7 million, or $3.31 basic and $3.16 diluted earnings per share. On October 28, 2024, the Company’s Board of Directors declared a quarterly cash dividend of $0.40 per common share, with a payment date of December 13, 2024 to all shareholders of record as of November 22, 2024 (the record date). As of October 28, 2024, there were 50,525,001 common shares of the Company outstanding.
Founded by Emanuele A. Lauro on 1 July 2009, Scorpio Tankers, completed its underwriting initial public offering on the New York Stock Exchange (NYSE) in April 2010. The company put up 12.5 million shares for sale at a starting price of $13. As a result, it raised about $150 million.
Scorpio Tankers at a Glance
Founded: 2009 Headquarters: Monaco Fleet of vessels: 100 product tankers (39 LR2, 47 MR and 14 Handymax)
