STNG - Scorpio Tankers to exercise ships purchase options leading to debt reduction
2023-03-13 07:22:51 ET
- Scorpio Tankers ( NYSE: STNG ) exercised the purchase options on six ships which includes two 2016 built LR2 product tankers, one 2019 built LR2 product tanker, two 2019 built MR product tankers and one 2020 built MR product tanker.
- The leases bear interest at LIBOR plus a margin of 3.50% annually.
- Through the purchase (expected in May 2023) the company will see a debt reduction of $149.8M.
- Last week, J.P. Morgan initiated coverage with an Overweight rating and $87 price target on STNG, saying the product tanker shipping group is enjoying "a sharp inflection in prospects, moving from weak earnings and over-leverage to strong earnings and rapid deleveraging."
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Scorpio Tankers to exercise ships purchase options leading to debt reduction