| Current and long-term debt | Current and long-term debt The following is a breakdown of the current and non-current portion of our debt outstanding as of December 31, 2019 and December 31, 2018 : At December 31, In thousands of U.S. dollars 2019 2018 Current portion (1) $ 235,482 $ 297,934 Finance lease (2) 122,229 114,429 Current portion of long-term debt 357,711 412,363 Non-current portion (3) 999,268 1,192,000 Finance lease (4) 1,195,494 1,305,952 $ 2,552,473 $ 2,910,315 (1) The current portion at December 31, 2019 was net of unamortized deferred financing fees of $1.2 million . The current portion at December 31, 2018 was net of unamortized deferred financing fees of $2.1 million . (2) The current portion at December 31, 2019 was net of unamortized deferred financing fees of $0.8 million . The current portion at December 31, 2018 was net of unamortized deferred financing fees of $0.8 million . (3) The non-current portion at December 31, 2019 was net of unamortized deferred financing fees of $7.6 million . The non-current portion at December 31, 2018 was net of unamortized deferred financing fees of $12.0 million . (4) The non-current portion at December 31, 2019 was net of unamortized deferred financing fees of $7.1 million . The non-current portion at December 31, 2018 was net of unamortized deferred financing fees of $8.7 million . The following is a rollforward of the activity within debt (current and non-current), by facility, for the year ended December 31, 2019 : Activity Balance as of December 31, 2019 consists of: In thousands of U.S. dollars Carrying Value as of December 31, 2018 Drawdowns Repayments Other Activity (1) Carrying Value as of December 31, 2019 Current Non-Current KEXIM Credit Facility 299,300 — (100,286 ) — 199,014 25,350 173,664 ABN AMRO Credit Facility 100,508 — (8,554 ) — 91,954 91,954 — ING Credit Facility 144,176 — (12,737 ) — 131,439 12,612 118,827 2018 NIBC Credit Facility 34,851 — (3,230 ) — 31,621 3,230 28,391 2017 Credit Facility 144,765 — (13,266 ) — 131,499 13,265 118,234 Credit Agricole Credit Facility 96,211 — (8,568 ) 823 88,466 7,790 80,676 ABN AMRO / K-Sure Credit Facility 46,832 — (3,851 ) 745 43,726 3,139 40,587 Citibank / K-Sure Credit Facility 97,609 — (8,416 ) 1,893 91,086 6,608 84,478 ABN / SEB Credit Facility 114,825 — (11,500 ) — 103,325 10,750 92,575 Hamburg Commercial Bank Credit Facility — 42,150 — — 42,150 3,181 38,969 Prudential Credit Facility — 55,463 — — 55,463 5,084 50,379 Ocean Yield Lease Financing 158,757 — (10,718 ) 196 148,235 10,835 137,400 CMBFL Lease Financing 61,198 — (4,908 ) 183 56,473 4,733 51,740 BCFL Lease Financing (LR2s) 97,454 — (7,641 ) 571 90,384 7,740 82,644 CSSC Lease Financing 251,832 — (17,309 ) (796 ) 233,727 18,072 215,655 CSSC Scrubber Lease Financing — 10,976 — — 10,976 5,488 5,488 BCFL Lease Financing (MRs) 98,831 — (11,021 ) — 87,810 11,726 76,084 2018 CMBFL Lease Financing 136,543 — (10,114 ) — 126,429 10,114 116,315 $116.0 Million Lease Financing 112,674 — (6,634 ) — 106,040 7,122 98,918 AVIC Lease Financing 139,103 — (11,794 ) — 127,309 11,794 115,515 China Huarong Lease Financing 137,250 — (13,500 ) — 123,750 13,500 110,250 $157.5 Million Lease Financing 152,086 — (14,143 ) — 137,943 14,143 123,800 COSCO Lease Financing 84,150 — (7,700 ) — 76,450 7,700 68,750 IFRS 16 - Leases - 7 Handymax — 24,194 (11,416 ) — 12,778 10,531 2,247 IFRS 16 - Leases - 3 MR — 51,008 (6,816 ) — 44,192 7,256 36,936 $670.0 Million Lease Financing — 531,533 (18,529 ) — 513,004 46,159 466,845 Unsecured Senior Notes Due 2020 53,750 — — — 53,750 53,750 — Unsecured Senior Notes Due 2019 57,500 — (57,500 ) — — — — Convertible Notes due 2019 142,180 — (144,974 ) 2,794 — — — Convertible Notes due 2022 171,469 — — 8,581 180,050 — 180,050 $ 2,933,854 $ 715,324 $ (525,125 ) $ 14,990 $ 3,139,043 $ 423,626 $ 2,715,417 Less: deferred financing fees (23,539 ) (1,587 ) — 8,530 (16,596 ) (1,969 ) (14,627 ) Total $ 2,910,315 $ 713,737 $ (525,125 ) $ 23,520 $ 3,122,447 $ 421,657 $ 2,700,790 (1) Relates to non-cash accretion or amortization of (i) obligations assumed as part of the Merger with NPTI, which were recorded at fair value on the closing date (described below), and (ii) accretion of our Convertible Notes due 2019 and Convertible Notes due 2022. Secured Debt Each of our secured credit facilities contains financial and restrictive covenants, which require us to, among other things, comply with certain financial tests (described below); deliver quarterly and annual financial statements and annual projections; comply with restrictive covenants, including maintaining adequate insurances; comply with laws (including environmental laws and ERISA); and maintain flag and class of our vessels. Other such covenants may, among other things, restrict consolidations, mergers or sales of our assets; require us to obtain lender approval on changes in our vessel manager; limit our ability to place liens on our assets; limit our ability to incur additional indebtedness; prohibit us from paying dividends if there is a covenant breach under the loan or an event of default has occurred or would occur as a result of payment of such dividend; prohibit our transactions with affiliates. Furthermore, our debt agreements contain customary events of default, including cross-default provisions, as well as subjective acceleration clauses under which the debt could become due and payable in the event of a material adverse change in the Company’s business. These secured credit facilities may be secured by, among other things: • a first priority mortgage over the relevant collateralized vessels; • a first priority assignment of earnings, insurances and charters from the mortgaged vessels for the specific facility; • a pledge of earnings generated by the mortgaged vessels for the specific facility; and • a pledge of the equity interests of each vessel owning subsidiary under the specific facility. Each of our secured credit facilities are described below. KEXIM Credit Facility In February 2014, we executed a senior secured term loan facility for $429.6 million , or the KEXIM Credit Facility, with a group of financial institutions led by DNB Bank ASA and Skandinaviska Enskilda Banken AB (publ) and from the Export-Import Bank of Korea, or KEXIM, a statutory juridical entity established under The Export-Import Bank of Korea Act of 1969, as amended, in the Republic of Korea. This KEXIM Credit Facility includes commitments from KEXIM of $300.6 million , or the KEXIM Tranche, and a group of financial institutions led by DNB Bank ASA and Skandinaviska Enskilda Banken AB (publ) of $129.0 million , or the Commercial Tranche. Drawdowns under the KEXIM Credit Facility occurred in connection with the delivery of 18 newbuilding vessels as specified in the loan agreement. In addition to KEXIM’s commitment of up to $300.6 million , KEXIM also provided an optional guarantee for a five -year amortizing note of $125.25 million , the proceeds of which reduced the $300.6 million KEXIM Tranche. These notes were issued on July 18, 2014 and were repaid in full upon their maturity in September 2019. The Commercial Tranche matures on the sixth anniversary of the delivery date of the last vessel specified under the loan (January 2021), and the KEXIM Tranche matures on the 12th anniversary of the weighted average delivery date of the vessels specified under the loan assuming the Commercial Tranche is refinanced through that date (September 2026). Repayments are being made in ten equal consecutive semi-annual repayment installments in accordance with a 15 -year repayment profile under the Commercial Tranche and a 12 -year repayment profile under the KEXIM Tranche (which includes the KEXIM Notes). Repayments commenced in March 2015 for the KEXIM Tranche and in July 2015 for the Commercial Tranche. Borrowings under the KEXIM Tranche bear interest at LIBOR plus an applicable margin of 3.25% . Borrowings under the Commercial Tranche bear interest at LIBOR plus an applicable margin of 3.25% from the effective date of the agreement to the fifth anniversary thereof and 3.75% thereafter until the maturity date in respect of the Commercial Tranche. Our KEXIM Credit Facility contains certain financial covenants which require us to maintain: • The ratio of net debt to total capitalization no greater than 0.60 to 1.00. • Consolidated tangible net worth of no less than $1.0 billion plus (i) 25% of cumulative positive net income (on a consolidated basis) for each fiscal quarter commencing on or after January 1, 2016 and (ii) 50% of the net proceeds of any new equity issues occurring on or after January 1, 2016. • Minimum liquidity of not less than the greater of $25.0 million or $500,000 per each owned vessel plus $250,000 per each time chartered-in vessel. • The minimum threshold for the aggregate fair market value of the vessels as a percentage of the then aggregate principal amount in the facility shall at all times be no less than 155% . During the year ended December 31, 2019 , we made scheduled principal payments of $33.7 million on this credit facility. Additionally, the Company refinanced the debt on five of the vessels collateralized under this facility in December 2019, which resulted in an unscheduled principal repayment of $66.6 million and the write off of approximately $1.2 million of deferred financing fees. The outstanding amounts relating to this facility as of December 31, 2019 and 2018 were $199.0 million and $299.3 million , respectively. We were in compliance with the financial covenants relating to this facility as of those dates. ABN AMRO Credit Facility In July 2015, we executed a senior secured term loan facility with ABN AMRO Bank N.V. and DVB Bank SE for up to $142.2 million . This facility was fully drawn in 2015 to partially finance the purchases of STI Savile Row, STI Kingsway and STI Carnaby and to refinance the existing indebtedness on STI Spiga. We refer to this credit facility as our ABN AMRO Credit Facility. Repayments under the ABN AMRO Credit Facility are being made in equal consecutive quarterly repayment installments in accordance with a 15 -year repayment profile. Repayments commenced three months after the drawdown date of each vessel. Each tranche matures on the fifth anniversary of the initial drawdown date and a balloon installment payment is due on the maturity date of each tranche. Borrowings under the ABN AMRO Credit Facility bear interest at LIBOR plus an applicable margin of 2.15% . Our ABN AMRO Credit Facility includes financial covenants that require us to maintain: • The ratio of net debt to total capitalization no greater than 0.60 to 1.00. • Consolidated tangible net worth of no less than $677.3 million plus (i) 25% of the cumulative positive net income (on a consolidated basis) for each fiscal quarter commencing on or after October 1, 2013 and (ii) 50% of the net proceeds of new equity issues occurring on or after October 1, 2013. • Minimum liquidity of not less than the greater of $25.0 million or $500,000 per each owned vessel. • The aggregate of the fair market value of the vessels provided as collateral under the facility shall at all times be no less than 145% of the then aggregate outstanding principal amount of the loans under the credit facility through June 30, 2019 and 150% thereafter. During the year ended December 31, 2019 , we made scheduled principal payments of $8.6 million on this credit facility. The outstanding amounts relating to this facility as of December 31, 2019 and 2018 were $92.0 million and $100.5 million , respectively. We were in compliance with the financial covenants relating to this facility as of those dates. ING Credit Facility In June 2015, we executed a senior secured term loan facility with ING Bank N.V., London Branch for a credit facility of up to $52.0 million . In September 2015, we amended and restated the facility to increase the borrowing capacity to $87.0 million , and in March 2016, we amended and restated the facility to further increase the borrowing capacity to $132.5 million . In June 2018, we executed another agreement to further increase the borrowing capacity to $171.2 million . The 2018 upsized portion of the loan facility was fully drawn in September 2018 and was used to refinance the existing outstanding indebtedness relating to one Handymax product tanker ( STI Rotherhithe ) and one MR product tanker ( STI Notting Hill ), which were previously financed under the Company’s K-Sure Credit Facility. Repayments on borrowings up to $132.5 million are being made in equal quarterly installments, in accordance with a 15 -year repayment profile, and a balloon installment payment due on the maturity dates of March 4, 2021 for STI Lombard and STI Osceola and June 24, 2022 for STI Grace, STI Jermyn, STI Black Hawk , STI Pontiac , STI Rotherhithe and STI Notting Hill . The 2018 upsized portion of the loan for STI Rotherhithe and STI Notting Hill will be repaid in equal quarterly installments of $1.0 million per quarter, in aggregate, for the first eight installments and $0.8 million per quarter, in aggregate, thereafter, with a balloon payment due upon the maturity date of June 24, 2022. Borrowings under the ING Credit Facility bear interest at LIBOR plus a margin of 1.95% per annum for the STI Lombard , STI Osceola, STI Grace, STI Jermyn, STI Black Hawk and STI Pontiac tranches. The STI Rotherhithe and STI Notting Hill tranches bear interest at LIBOR plus a margin of 2.4% per annum. Our ING Credit Facility includes financial covenants that require us to maintain: • The ratio of net debt to total capitalization no greater than 0.60 to 1.00. • Consolidated tangible net worth of not less than $1.0 billion plus (i) 25% of the positive consolidated net income for each fiscal quarter commencing on or after January 1, 2016 and (ii) 50% of the net proceeds of new equity issues occurring on or after January 1, 2016. • Minimum liquidity of not less than the greater of $25.0 million or $500,000 per each owned vessel plus $250,000 per each time chartered-in vessel. • The aggregate of the fair market value of the vessels provided as collateral under the facility shall at all times be no less than 160% of the then aggregate outstanding principal amount of the loans under the credit facility. The outstanding amounts relating to this facility as of December 31, 2019 and 2018 were $131.4 million and $144.2 million , respectively. We were in compliance with the financial covenants relating to this facility as of those dates. Additionally, in September 2019, we executed an agreement with ING to upsize the existing ING Credit Facility by $8.1 million in aggregate, the proceeds of which are expected to be used to partially finance the purchase and installation of scrubbers on seven of the vessels that are currently collateralized under this facility. The upsized portion of the credit facility will mature upon the dates of maturity set forth above, bears interest at LIBOR plus a margin of 2.40% per annum on one of the vessels and 1.95% per annum on the remaining six vessels and is expected to be repaid in aggregate equal quarterly installments of approximately $0.7 million (for all seven vessels), with a balloon payment due at maturity. The amounts available under the facility are expected to be drawn upon the installation of scrubbers on the collateralized vessels, which are scheduled for 2020. 2018 NIBC Credit Facility In June 2018, we executed an agreement with NIBC Bank N.V. for a $35.7 million term loan facility. We refer to this facility as our 2018 NIBC Credit Facility. This facility was fully drawn in August 2018, and the proceeds were used to refinance the existing indebtedness related to two MR product tankers ( STI Memphis and STI Soho ). The loan facility has a final maturity of June 2021, bears interest at LIBOR plus a margin of 2.5% per annum and will be repaid in equal quarterly installments of $0.8 million , in aggregate, with a balloon payment due upon maturity. Our 2018 NIBC Credit Facility includes financial covenants that require us to maintain: • The ratio of net debt to total capitalization no greater than 0.60 to 1.00. • Consolidated tangible net worth of no less than $1.0 billion plus (i) 25% of the cumulative positive net income (on a consolidated basis) for each fiscal quarter commencing on or after January 1, 2016 and (ii) 50% of the net proceeds of new equity issuances occurring on or after January 1, 2016. • Minimum liquidity of not less than the greater of $25.0 million or $500,000 per each owned vessel plus $250,000 per each time chartered-in vessel. • The aggregate of the fair market value of the vessels provided as collateral under the facility shall be: 135% through the third quarter of 2020 and 140% at all times thereafter. The outstanding amounts relating to this facility were $31.6 million and $34.9 million as of December 31, 2019 and 2018 , respectively. We were in compliance with the financial covenants relating to this facility as of those dates. Additionally, in August 2019, we executed an agreement with NIBC to upsize the existing NIBC Credit Facility by $3.1 million in aggregate, the proceeds of which are expected to be used to partially finance the purchase and installation of scrubbers on the two vessels that are currently collateralized under this facility. The upsized portion of the credit facility will mature on June 30, 2021, bears interest at LIBOR plus a margin of 2.50% per annum and is expected to be repaid in equal quarterly installments of approximately $0.1 million per vessel (and with any residual remaining repaid at maturity). The amounts available under the facility are expected to be drawn upon the installation of scrubbers on the collateralized vessels, which are scheduled for 2020. 2017 Credit Facility In March 2017, we executed a senior secured term loan facility with a group of financial institutions led by Macquarie Bank Limited (London Branch) for up to $172.0 million , or the 2017 Credit Facility. The 2017 Credit Facility consists of five tranches, including two commercial tranches of $15.0 million and $25.0 million , a KEXIM Guaranteed Tranche of $48.0 million , a KEXIM Funded Tranche of $52.0 million , and a GIEK Guaranteed Tranche of $32.0 million . Other key terms are as follows: • The first commercial tranche of $15.0 million has a final maturity of six years from the drawdown date of each vessel, bears interest at LIBOR plus a margin of 2.25% per annum, and has a 15 -year repayment profile. • The second commercial tranche of $25.0 million has a final maturity of nine years from the drawdown date of each vessel (assuming KEXIM or GIEK have not exercised their option to call for prepayment of the KEXIM and GIEK funded and guaranteed tranches by the date falling two months prior to the maturity of the first commercial tranche and in the event that the first commercial tranche has not been extended), bears interest at LIBOR plus a margin of 2.25% per annum, and has a 15 -year repayment profile. • The KEXIM Funded Tranche and GIEK Guaranteed Tranche have a final maturity of 12 years from the drawdown date of each vessel (assuming the commercial tranches are refinanced through that date), bear interest at LIBOR plus a margin of 2.15% per annum, and have a 12 -year repayment profile. • The KEXIM Guaranteed Tranche has a final maturity of 12 years from the drawdown date of each vessel (assuming the commercial tranches are refinanced through that date), bears interest at LIBOR plus a margin of 1.60% per annum, and has a 12 -year repayment profile. Our 2017 Credit Facility includes financial covenants that require us to maintain: • The ratio of net debt to total capitalization no greater than 0.60 to 1.00. • Consolidated tangible net worth of no less than $1.0 billion plus (i) 25% of the cumulative positive net income (on a consolidated basis) for each fiscal quarter commencing on or after January 1, 2016 and (ii) 50% of the net proceeds of new equity issues occurring on or after January 1, 2016. • Minimum liquidity of not less than the greater of $25.0 million or $500,000 per each owned vessel and $250,000 per each time chartered-in vessel. • The aggregate of the fair market value of the vessels provided as collateral under the facility shall at all times be no less than 155% of the then aggregate outstanding principal amount of the loans under the credit facility. Additionally, we have an aggregate of $5.0 million on deposit in a debt service reserve account as of December 31, 2019 in accordance with the terms and conditions of this facility. The funds deposited in this account are not freely available and will be released upon maturity. The balance in this account has been recorded as non-current Restricted Cash on our consolidated balance sheet as of December 31, 2019 . During the year ended December 31, 2019 , we made scheduled principal payments of $13.3 million on this credit facility. The outstanding amounts as of December 31, 2019 and 2018 were $131.5 million and $144.8 million . We were in compliance with the financial covenants relating to this facility as of those dates. Credit Agricole Credit Facility As part of the closing of the NPTI Vessel Acquisition in June 2017, we assumed the outstanding indebtedness under NPTI's senior secured term loan with Credit Agricole. STI Excel, STI Excelsior, STI Expedite and STI Exceed are pledged as collateral under this facility. Repayments are being made in equal quarterly installments of $2.1 million in aggregate in accordance with a 15 -year repayment profile with a balloon payment due upon maturity, which occurs between November 2022 and February 2023 (depending on the vessel). The facility bears interest at LIBOR plus a margin of 2.75% . Our Credit Agricole Credit Facility includes financial covenants that require us to maintain: • The ratio of net debt to total capitalization no greater than 0.60 to 1.00. • Consolidated tangible net worth of no less than $1.0 billion plus (i) 25% of the cumulative positive net income (on a consolidated basis) for each fiscal quarter commencing on or after January 1, 2016 and (ii) 50% of the net proceeds of new equity issues occurring on or after January 1, 2016. • Minimum liquidity of not less than the greater of $25.0 million or $500,000 per each owned vessel and $250,000 per each time chartered-in vessel. • The aggregate of the fair market value of the vessels provided as collateral under the facility shall at all times be no less than 135% of the then aggregate outstanding principal amount of the loans under the credit facility. The carrying values of the indebtedness related to this facility (which includes the discount recorded to write the value down to its fair value as part of the purchase price allocation for the Merger) as of December 31, 2019 and 2018 were $88.5 million and $96.2 million . We were in compliance with the financial covenants relating to this facility as of those dates. ABN AMRO/K-Sure Credit Facility We assumed the outstanding indebtedness under NPTI's senior secured credit facility with ABN AMRO Bank N.V. and Korea Trade Insurance Corporation, or K-Sure, which we refer to as the ABN AMRO/K-Sure Credit Facility, upon the closing of the Merger with NPTI in September 2017. Two LR1s ( STI Precision and STI Prestige ) are collateralized under this facility and the facility consists of two separate tranches, a $11.5 million commercial tranche and a $43.8 million K-Sure tranche (which represents the amounts assumed from NPTI). The commercial tranche bears interest at LIBOR plus 2.75% , and the K-Sure tranche bears interest at LIBOR plus 1.80% . Repayments on the K-Sure tranche are being made in equal quarterly installments of $1.0 million in accordance with a 12 -year repayment profile from the date of delivery from the shipyard, with a balloon payment due upon maturity, and the commercial tranche is being repaid via a balloon payment upon maturity in September and November 2022 (depending on the vessel). The K-Sure tranche fully matures in September and November 2028 (depending on the vessel), and K-Sure has an option to require repayment upon the maturity of the commercial tranche if the commercial tranche is not refinanced by its maturity dates. Our ABN AMRO/K-Sure Credit Facility includes financial covenants that require us to maintain: • The ratio of net debt to total capitalization no greater than 0.60 to 1.00. • Consolidated tangible net worth no less than $1.0 billion plus (i) 25% of the cumulative positive net income (on a consolidated basis) for each fiscal quarter commencing on or after January 1, 2016 and (ii) 50% of the net proceeds of new equity issues occurring on or after January 1, 2016. • Minimum liquidity of not less than the greater of $25.0 million or $500,000 per each owned vessel and $250,000 per each time chartered-in vessel. • The aggregate of the fair market value of the vessels provided as collateral under the facility shall at all times be no less than 135% of the then aggregate outstanding principal amount of the loans (less any amounts held in a debt service reserve account as described below) under the credit facility. Additionally, we have an aggregate of $0.5 million on deposit in a debt service reserve account as of December 31, 2019 in accordance with the terms and conditions of this facility. The funds deposited in this account are not freely available and will be released upon maturity. The balance in this account has been recorded as non-current Restricted Cash on our consolidated balance sheet as of December 31, 2019 . The carrying values of the indebtedness related to this facility (which includes the discount recorded to write the value down to its fair value as part of the purchase price allocation for the Merger) as of December 31, 2019 and 2018 were $43.7 million and $46.8 million , respectively. We were in compliance with the financial covenants relating to this facility as of those dates. Citibank/K-Sure Credit Facility We assumed the outstanding indebtedness under NPTI's senior secured credit facility with Citibank N.A., London Branch, Caixabank, S.A., and K-Sure, which we refer to as the Citibank/K-Sure Credit Facility, upon the closing of the Merger with NPTI in September 2017. Four LR1s ( STI Excellence , STI Executive , STI Experience , and STI Express ) are collateralized under this facility. The facility consists of two separate tranches, a $25.1 million commercial tranche and a $91.2 million K-Sure tranche (which represents the amounts assumed from NPTI). The commercial tranche bears interest at LIBOR plus 2.50% and the K-Sure tranche bears interest at LIBOR plus 1.60% . Repayments on the K-Sure tranche are being made in equal quarterly installments of $2.1 million in accordance with a 12 -year repayment profile from the date of delivery from the shipyard, with a balloon payment due upon maturity and the commercial tranche is scheduled to be repaid via a balloon payment upon the maturity which occurs between March and May 2022 (depending on the vessel). The K-Sure tranche fully matures between March and May 2028 (depending on the vessel), and K-Sure has an option to require repayment upon the maturity of the commercial tranche if the commercial tranche is not refinanced by its maturity dates. Our Citibank/K-Sure Credit Facility includes financial covenants that require us to maintain: • The ratio of net debt to total capitalization no greater than 0.60 to 1.00. • Consolidated tangible net worth no less than $1.0 billion plus (i) 25% of the cumulative positive net income (on a consolidated basis) for each fiscal quarter commencing on or after January 1, 2016 and (ii) 50% of the net proceeds of new equity issues occurring on or after January 1, 2016. • Minimum liquidity of not less than the greater of $25.0 million or $500,000 per each owned vessel and $250,000 per each time chartered-in vessel. • The aggregate of the fair market value of the vessels provided as collateral under the facility shall at all times be no less than 135% of the then aggregate outstanding principal amount of the loans (less any amounts held in a debt service reserve account as described below) under the credit facility. Additionally, we have an aggregate of $4.0 million on deposit in a debt service reserve account as of December 31, 2019 in accordance with the terms and conditions of this facility. The funds deposited in this account are not freely available and will be released upon maturity. The balance in this account has been recorded as non-current Restricted Cash on our consolidated balance sheet as of December 31, 2019 . The carrying values of the indebtedness related to this facility (which includes the discount recorded to write the value down to its fair value as part of the purchase price allocation for the Merger) as of December 31, 2019 and 2018 were $91.1 million and $97.6 million , respectively. We were in compliance with the financial covenants relating to this facility as of those dates. ABN AMRO / SEB Credit Facility In June 2018, we executed a senior secured term loan facility with ABN AMRO Bank N.V. and Skandinaviska Enskilda Banken AB for up to $120.6 million . We refer to this facility as our ABN AMRO / SEB Credit Facility. This loan was fully drawn in June 2018 and the proceeds were used to refinance the existing indebtedness of $87.6 million under our K-Sure Credit Facility relating to five vessels consisting of one Handymax product tanker ( STI Hammersmith ), one MR product tanker ( STI Westminster ), and three LR2 product tankers ( STI Connaught, STI Winnie and STI Lauren ). The ABN AMRO/SEB Credit Facility has a final maturity of June 2023 and bears interest at LIBOR plus a margin of 2.6% per annum. The loan will be repaid in equal quarterly installments of $2.9 million per quarter, in aggregate, for the first eight installments and $2.5 million per quarter, in aggregate, thereafter, with a balloon payment due upon maturity. Our ABN AMRO / SEB Credit Facility includes financial covenants that require us to maintain: • The ratio of net debt to total capitalization no greater than 0.65 to 1.00. • Consolidated tangible net worth of no less than $1,265,728,005 plus (i) 25% of the cumulative positive net income (on a consolidated basis) for each fiscal quarter commencing on or after January 1, 2018 and (ii) 50% of the net proceeds of new equity issuances occurring on or after January 1, 2018. • Minimum liquidity of not less than the greater of $25.0 million and $500,000 per each owned vessel plus $250,000 per each time chartered-in vessel. • The aggregate of the fair market value of the vessels provided as collateral under the facility shall be: 130% from the date of this agreement and ending on the second anniversary thereof and 140% at all times thereafter. The outstanding amounts as of December 31, 2019 and 2018 were $103.3 million and $114.8 million , respectively. We were in compliance with the financial covenants as of those dates. Additionally, in September 2019, we executed an agreement with the lenders under this facility to upsize the credit facility by up to $6.3 million in aggregate, the proceeds of which are expected to be used to partially finance the purchase and installation of scrubbers on four of the vessels that are currently collateralized under this facility. The upsized portion of the credit facility will mature in March 2023, bears interest at LIBOR plus a margin of 2.60% per annum and is expected to be repaid in equal quarterly installments of approximately $0.1 million per vessel through the maturity date of upsized portion of the loan. The amounts available under the facility are expected to be drawn upon the installation of scrubbers on the collateralized vessels, which are scheduled for 2020. Hamburg Commercial Bank Credit Facility In November 2019, we executed an agreement with Hamburg Commercial Bank AG for a senior secured term loan facility for $43.65 million , of which, (i) $42.15 million (Tranche 1) was used to refinance the existing debt for STI Veneto and STI Poplar, (which were previously financed under the KEXIM Credit Facility), and (ii) $1.5 million (Tranche 2) is expected to be used to finance the purchase and installation of a scrubber on STI Veneto . We refer to this facility as our Hamburg Commercial Bank Credit Facility. Tranche 1 was drawn in full in December 2019. The Hamburg Commercial Bank Credit Facility has a final maturity of November 2024 and bears interest at LIBOR plus a margin of 2.25% per annum. The loan will be repaid in in equal quarterly installments of $0.8 million per quarter, in aggregate, with a balloon payment due upon |
