Scorpio Tankers to sell, leaseback five product tankers to AVIC
Scorpio Tankers announced that it has agreed to sell and leaseback three MR product tankers and two LR2 product tankers to AVIC International Leasing. Upon completion, the company's liquidity is expected to increase by $42M in aggregate after the repayment of outstanding debt. These lease financing arrangements are part of the company's new financing initiatives that were announced on April 25. As part of the agreements, the company will bareboat charter-in the vessels for a period of eight years. In addition, the company has purchase options beginning at the end of the second 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.