Scorpio Tankers Amends Its 2010 Credit Facility Making It a Reducing Revolving Facility

Scorpio Tankers Inc. announced yesterday that it has amended its 2010 Credit Facility converting it to a reducing revolving credit facility from a term loan and that

it has agreed to time charter-in two vessels.
The Company executed an amendment to its 2010 Credit Facility with Nordea Bank Finland plc, acting through its New York branch, DnB NOR Bank ASA, acting through its New York branch, and ABN AMRO Bank N.V. The 2010 Credit Facility was originally signed on June 2, 2010. The amendment converts the 2010 Credit Facility from a term loan to a reducing revolving credit facility. This gives the Company the ability to pay down the outstanding balance when it has excess cash and re-borrow from the total available commitments as needed.
The total available commitment at the date of signing the amendment is $137.0 million, representing the balance of the original term loan, and the facility is fully drawn at this date. The commitment will reduce at the end of every quarter by $4.1 million until the loan matures on June 2, 2015. All of the covenants and terms in the amended credit facility are substantially the same as the covenants contained in the 2010 Credit Facility prior to the amendment. A commitment fee equal to 40% of the applicable margin is payable on the unused portion, if any, of the total available commitment amount.
In addition, the Company announced today that it has agreed to time charter-in two vessels on the terms summarized below:
The Histria Perla, a 2005 built Handymax product tanker (40,471 DWT) and the Histria Coral, a 2006 built Handymax product tanker (40,426 DWT), will each be chartered-in for two years at a rate of $12,750 and $13,250 per day for the first and second years, respectively. Each charter agreement includes an option for the Company to extend the charter for an additional year at a rate of $14,500 per day. The Histria Perla is expected to be delivered to the Company in July 2011, and the Histria Coral is expected to be delivered by the beginning of August 2011.
Emanuele Lauro, CEO of Scorpio Tankers, commented, "We are excited to announce the signing of these two time charter agreements at attractive terms because we believe the fundamentals of the product tanker sector and charterers' expectations continue to improve, as evidenced by the strengthening time charter market.
Emanuele Lauro continued, "The amendment to our 2010 credit facility will enable us optimize our cash flow and enhance our already strong liquidity position. Once again, these events demonstrate our ability and commitment to executing on market opportunities and creating value for our shareholders."
Scorpio Tankers Inc. is a provider of marine transportation of petroleum products worldwide. Scorpio Tankers Inc. currently owns one LR2 tanker, four LR1 tankers, four Handymax tankers, two MR tankers, and one post-Panamax tanker with an average age of 5.4 years.
Source: Scorpio Tankers Inc.