Scorpio Tankers Secures Loan Duo

zoom Scorpio Tankers said that it has received commitments from two leading European financial institutions for two separate loan facilities of up to USD 113.2 million. The loan is intended to partially finance the purchase of four LR2 product tankers that was announced in December 2014. A USD 52 million loan will be used to finance a portion of the purchase price of two LR2 product tankers currently under construction at Daehan Shipbuilding Co., Ltd. with expected deliveries in Q1 2016 and Q2 2016 respectively. The loan facility has a final maturity of seven years from the date of signing and bears interest at LIBOR plus a margin of 1.95% per annum. The company said it intends to use the remaining USD 61.2 million to finance a portion of the purchase price of two LR2 product tankers  under construction at Sungdong Shipbuilding & Marine Engineering Co., Ltd. The ships are slated for deliveries in Q2 2016 and Q3 2016 respectively. The loan facility has a final maturity of five years from the date of delivery of each vessel and bears interest at LIBOR plus a margin ranging between 1.95% and 2.40% per annum. Both loan facility are subject to customary conditions precedent and the execution of definitive documentation. Scorpio Tankers  has contracted for 15 newbuilding product tankers (seven MR and eight LR2), two of which are expected to be delivered in the first quarter of 2015, nine of which are expected to be delivered in the second quarter of 2015 and the remaining four vessels throughout 2016.