Scorpio Bags Financing for MR Duo

Scorpio NYSE-listed tanker owner Scorpio Tankers has received a commitment from NIBC Bank N.V. for a loan facility of up to USD 44 million, the company said. Scorpio added that it intends to use the loan facility to refinance the existing indebtedness on two MR product tankers, built in 2013. The loan has a final maturity of five years from the signing date and bears interest at LIBOR plus a margin of 2.50% per annum. The availability can be used to finance the lesser of USD 22 million and 67.5% of the fair market value of the respective vessels. In the first quarter, Monaco-based tanker owner saw its net income for the first quarter of 2016 drop to USD 28 million, in line with forecasts, 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 78 product tankers with an average age of 1.6 years and time charters-in 12 product tankers.