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Saturday, October 19, 2019

Maritime Logistics Professional

September 30, 2019

Scorpio Buys 19 Tankers from Trafigura

Image: Scorpio Tankers

Image: Scorpio Tankers

Monaco-based petroleum products shipping firm Scorpio Tankers has signed a deal to acquire 19 product tankers from Trafigura Maritime Logistics for around $803 million.

The acquisition of the leasehold interest in the vessels includes a finance lease arrangement with a financial institution under a bareboat contract arrangement.

According to the arrangement, Scorpio Tankers will acquire Trafigura Maritime Logistics’ subsidiaries that have leasehold interests in 19 product tankers.

The aggregate value of the vessels is $803 million, and after the assumption of the present value of the finance lease arrangement of approximately $670 million, the company issued approximately 4.6 million shares at $29.00 per share to Trafigura for an aggregate market value of $132.6 million.  The above-mentioned shares are subject to a customary lock-up through December 31, 2019.

The company also announced today that it has closed on the private placements with Trafigura for $35 million and Scorpio Services Holding Ltd., a related party, for $15 million, for an aggregate of $50 million or approximately 1.7 million shares at $29.00 per share.

As of today, Scorpio Tankers has 58,142,400 common shares issued and outstanding.

The acquisition consists of leasehold interests in four LR2s and 15 MRs for a total of 19 product tankers.  Fifteen of the vessels are currently on the water with an average age of 0.5 years, and the remaining four MR vessels will be delivered in 2020. All Vessels have exhaust gas cleaning systems, commonly known as scrubbers.  

The commercial and technical managements of the vessels are being transitioned to Scorpio Tankers and all of the delivered Vessels will be in the Scorpio MR Pool or the Scorpio LR2 Pool during the fourth quarter of 2019.

Scorpio Tankersexhaust gas cleaning systemspetroleum products