Scorpio Tankers Announces an Amendment to Its STI Spirit Credit Facility
Scorpio Tankers Inc. (NYSE: STNG) announced that it has amended the Company's STI Spirit Credit Facility with DVB Bank SE.
The amendment provides in substance that:
The ratio of EBITDA to interest expense shall be no less than 1.25 to 1.00 for the period commencing with the fourth quarter of 2011 through the fourth quarter of 2012, at which time the ratio will increase as follows: 1.50 to 1.00 for the first quarter of 2013, 1.75 to 1.00 for the second quarter of 2013, and 2.00 to 1.00 at all times thereafter. The ratio shall be calculated quarterly on a trailing four quarter basis.
Consolidated liquidity (cash, cash equivalents, and availability under the 2010 Credit Facility) shall be no less than $25 million, of which unrestricted cash and cash equivalents shall be no less than $15.0 million, until the Company owns, directly or indirectly, more than 15 vessels, at which time the amount increases by $750,000 per each additional vessel. The Company is restricted from paying dividends until its EBITDA to interest expense ratio is 2.00 to 1.00 or greater.
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