Scorpio Tankers has agreed to sell and leaseback seven product tankers to an international financial institution.
Upon completion, Scorpio's liquidity is expected to increase by US$42 million in aggregate after the repayment of outstanding debt.
These lease financing arrangements are part of the Scorpio's new financing initiatives that were announced on April 25, 2018.
As part of the agreements, Scorpio will bareboat charter-in the vessels for a period of seven years.
In addition, Scorpio has purchase options beginning at the end of the third year of each agreement. There is also a purchase obligation for each vessel upon the expiration of each agreement.
These lease financing arrangements are subject to customary conditions precedent and the execution of definitive documentation.
