Scorpio Bulkers announced that it has reached agreements with certain lenders to increase some of the current credit facilities by a total of $41 million to finance the installation of exhaust gas cleaning systems (scrubbers) on certain of its ships.
The additional amounts will be drawn upon the installation of the scrubbers on these vessels, and are structured as upsizings of existing credit facilities. They also have loan margins that match the loan margins on the respective existing credit facilities.
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Before this agreement, on December 2018, Scorpio Bulkers had announced that it signed an agreement with third parties to purchase scrubbers for 18 of its vessels in 2019 and for 10 of its vessels in 2020. The total value of these agreements reaches $42.4 million.
Scorpio Bulkers also has an option to buy scrubbers for up to 18 additional vessels in 2020.
In addition, Scorpio Tankers will have retrofitted 62 of its vessels with scrubbers, by the end of 2019. Specifically, during the first quarter of 2019, Scorpio Tankers will install scrubbers on two ships, namely two LR2s. This number will increase to 17 ships in the second quarter. The company will install scrubbers on six LR2s, three LR1s and eight MRs.
As for the third quarter, three more ships will have scrubbers. The number of LR2s with scrubbers will increase by four, reaching 10, while an MR less will have scrubbers. For the last quarter of 2019, the number of LR2s with scrubbers will be 12, while MRs with scrubbers will be 10. What is more, only one LR1 will now have scrubbers.
