| 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, 2022 and December 31, 2021: At December 31, In thousands of U.S. dollars 2022 2021 Current portion of bank debt and bonds (1) $ 31,504 $ 235,278 Sale and leaseback liabilities (2) 269,145 178,062 Current portion of long-term debt 300,649 413,340 Non-current portion of bank debt and bonds (3) 264,106 666,409 Sale and leaseback liabilities (4) 871,469 1,461,929 $ 1,436,224 $ 2,541,678 (1) The current portion at December 31, 2022 was net of unamortized deferred financing fees of $0.5 million. The current portion at December 31, 2021 was net of unamortized deferred financing fees of $1.1 million. (2) The current portion at December 31, 2022 was net of unamortized deferred financing fees of $0.8 million and prepaid interest of $2.5 million. The current portion at December 31, 2021 was net of unamortized deferred financing fees of $1.4 million and prepaid interest of $3.1 million. (3) The non-current portion at December 31, 2022 was net of unamortized deferred financing fees of $4.0 million. The non-current portion at December 31, 2021 was net of unamortized deferred financing fees of $10.6 million. (4) The non-current portion at December 31, 2022 was net of unamortized deferred financing fees of $7.4 million. The non-current portion at December 31, 2021 was net of unamortized deferred financing fees of $11.8 million. The following is a rollforward of the activity within debt (current and non-current, and inclusive of IFRS 16 - lease liabilities), by facility, for the year ended December 31, 2022: Activity Balance as of December 31, 2022 consists of: In thousands of U.S. dollars Carrying Value as of December 31, 2021 Drawdowns Repayments Other Activity (1) Carrying Value as of December 31, 2022 Current Non-Current Credit Agricole Credit Facility 72,838 — (73,591) 753 — — — Citibank / K-Sure Credit Facility 77,781 — (78,401) 620 — — — Hamburg Commercial Bank Credit Facility 37,024 — (3,292) — 33,732 3,292 30,440 Prudential Credit Facility 44,832 — (5,546) — 39,286 5,546 33,740 2019 DNB / GIEK Credit Facility 45,450 — (7,112) — 38,338 7,113 31,225 BNPP Sinosure Credit Facility 86,314 5,075 (10,813) — 80,576 10,909 69,667 2020 $225.0 Million Credit Facility 145,636 — (107,871) — 37,765 5,134 32,631 2021 $21.0 Million Credit Facility 19,245 — (19,245) — — — — 2021 $43.6 Million Credit Facility 43,550 — (43,550) — — — — Ocean Yield Lease Financing 126,334 — (11,542) (519) 114,273 89,030 25,243 BCFL Lease Financing (LR2s) 77,604 — (11,011) 465 67,058 10,431 56,627 CSSC Lease Financing 132,957 — (14,565) 773 119,165 14,310 104,855 BCFL Lease Financing (MRs) 68,888 — (15,686) — 53,202 16,304 36,898 2018 CMBFL Lease Financing 111,986 — (111,986) — — — — $116.0 Million Lease Financing 95,789 — (95,789) — — — — AVIC Lease Financing 106,405 — (28,636) — 77,769 77,769 — China Huarong Lease Financing 103,416 — (103,416) — — — — $157.5 Million Lease Financing 109,657 — (109,657) — — — — COSCO Lease Financing 61,050 — (61,050) — — — — 2020 CMBFL Lease Financing 41,332 — (3,242) — 38,090 3,242 34,848 2020 TSFL Lease Financing 43,928 — (3,321) — 40,607 3,321 37,286 2020 SPDB-FL Lease Financing 87,111 — (6,495) — 80,616 6,495 74,121 2021 AVIC Lease Financing 90,913 — (7,251) — 83,662 7,252 76,410 2021 CMBFL Lease Financing 74,565 — (6,520) — 68,045 6,520 61,525 2021 TSFL Lease Financing 54,377 — (4,380) — 49,997 4,380 45,617 2021 CSSC Lease Financing 53,893 — (5,262) — 48,631 5,262 43,369 2021 $146.3 Million Lease Financing 146,250 — (12,551) — 133,699 13,179 120,520 2021 Ocean Yield Lease Financing 69,783 — (5,850) — 63,933 5,850 58,083 2022 AVIC Lease Financing — 117,204 (4,584) — 112,620 9,168 103,452 IFRS 16 - Leases - 3 MR (See Note 6) 29,268 — (8,130) — 21,138 8,622 12,516 IFRS 16 - Leases - $670.0 Million (see Note 6) 546,730 — (70,791) — 475,939 44,926 431,013 Unsecured Senior Notes Due 2025 70,050 359 — 42 70,451 — 70,451 Convertible Notes Due 2022 68,312 — (69,695) 1,383 — — — Convertible Notes Due 2025 202,355 — (14,273) (188,082) — — — $ 3,145,623 $ 122,638 $ (1,135,104) $ (184,565) $ 1,948,592 $ 358,055 $ 1,590,537 Less: deferred financing fees (24,821) (3,044) — 15,107 (12,758) (1,325) (11,433) Less: prepaid interest expense (3,747) — 12 — (3,735) (3,735) — Total $ 3,117,055 $ 119,594 $ (1,135,092) $ (169,458) $ 1,932,099 $ 352,995 $ 1,579,104 (1) Relates to non-cash accretion, write-offs, amortization or other adjustments on (i) debt or lease obligations assumed as part of the 2017 merger with Navig8 Product Tankers Inc. ("NPTI"), which were recorded at fair value on the closing dates, (ii) the carrying values of certain sale and leaseback arrangements related to the notifications to exercise purchase options; (iii) our Unsecured Senior Notes Due 2025, (iv) our Convertible Notes due 2022 and Convertible Notes Due 2025 of $1.4 million and $11.3 million, respectively, and (v) the impact of the Convertible Notes Due 2025 that were converted to common stock, as discussed below. Secured Bank 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; or 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. Credit Agricole Credit Facility As part of the closing of the four LR1s that were acquired from NPTI in 2017, we assumed the outstanding indebtedness under a senior secured term loan with Credit Agricole (the "Credit Agricole Credit Facility"). STI Excel, STI Excelsior, STI Expedite and STI Exceed were pledged as collateral under this facility. During the year ended December 31, 2022, we repaid the aggregate outstanding indebtedness on this facility of $72.0 million in connection with the sales of these vessels. The carrying value of the debt 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 of the acquisition) as of December 31, 2021 was $72.8 million, and we were in compliance with the financial covenants relating to this facility as of that date. Citibank / K-Sure Credit Facility We assumed the outstanding indebtedness under a senior secured credit facility with Citibank N.A., London Branch, Caixabank, S.A., and K-Sure, as part of the acquisition of NPTI (the "Citibank / K-Sure Credit Facility"). Four LR1s ( STI Excellence , STI Executive , STI Experience , and STI Express ) were collateralized under this facility. During the year ended December 31, 2022, we repaid the aggregate outstanding indebtedness of $77.3 million in connection with the sales of these vessels. Additionally, we had an aggregate of $4.0 million on deposit in a debt service reserve account in accordance with the terms and conditions of this facility which was released upon the repayment of this facility. The carrying value of the debt 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 of the acquisition) as of December 31, 2021 was $77.8 million. We were in compliance with the financial covenants relating to this facility as of that date. 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 (the "Hamburg Commercial Bank Credit Facility"), of which, (i) $42.2 million (Tranche 1) was used to refinance the existing debt for STI Veneto and STI Poplar , and (ii) $1.4 million (Tranche 2) was 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 December 2019 and Tranche 2 was drawn in April 2020. Both tranches of the Hamburg Commercial Bank Credit Facility mature in November 2024, bear interest at LIBOR plus a margin of 2.25% per annum and are scheduled to be repaid in equal quarterly installments of $0.8 million per quarter, in aggregate, with a balloon payment due upon maturity. Our Hamburg Commercial Bank 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 December 31, 2018 and (ii) 50% of the net proceeds of new equity issuances occurring on or after December 31, 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: 134% of the loan outstanding. The amounts outstanding under this facility as of December 31, 2022 and 2021 were $33.7 million and $37.0 million, respectively, and we were in compliance with the financial covenants as of those dates. Prudential Credit Facility In November 2019, we executed an agreement with Prudential Private Capital for a senior secured term loan facility for $55.5 million (the "Prudential Credit Facility"). The Prudential Credit Facility was fully drawn in December 2019, and a portion of the proceeds was used to refinance the outstanding indebtedness of $35.6 million for STI Clapham, STI Camden and STI Acton . The Prudential Credit Facility has a final maturity of December 2025 and bears interest at LIBOR plus a margin of 3.00% per annum. The loan is scheduled to be repaid in monthly installments of $0.5 million per month, in aggregate, with a balloon payment due upon maturity. Our Prudential 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 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 no less than 125% of the loan outstanding. The amounts outstanding as of December 31, 2022 and 2021 were $39.3 million and $44.8 million, respectively, and we were in compliance with the financial covenants as of those dates. 2019 DNB / GIEK Credit Facility In November 2019, we executed a $55.5 million term loan facility with DNB Bank ASA and the Norwegian Export Credit Guarantee Agency (“GIEK”). The loan is comprised of two facilities: (i) an ECA facility of $47.2 million (which is comprised of a $41.6 million tranche which is guaranteed by GIEK, or the “GIEK Tranche”, and a $5.6 million commercial tranche or the “Commercial Bank Tranche”) and (ii) a commercial facility of $8.3 million, or the “Commercial Facility." These facilities are collectively referred to as the 2019 DNB/GIEK Credit Facility. In March 2020, we drew $31.9 million from this facility to refinance the existing debt on STI Sloane . In December 2020, we drew $23.7 million from this credit facility to refinance the existing debt on STI Condotti . The 2019 DNB / GIEK Credit Facility matures in July 2024. The GIEK tranche bears interest at LIBOR plus a margin of 2.50% per annum, and the Commercial Bank and Commercial Facility tranches bear interest at LIBOR plus a margin of 2.50% per annum. The 2019 DNB / GIEK Credit Facility is scheduled to be repaid in equal quarterly installments of approximately $1.8 million per quarter with a balloon payment due at maturity. Our 2019 DNB/GIEK 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 130% of the then aggregate outstanding principal amount of the loans under the credit facility through the second anniversary of the date of the agreement and 135% at all times thereafter. The amounts outstanding as of December 31, 2022 and 2021 were $38.3 million and $45.5 million, respectively, and we were in compliance with the financial covenants as of those dates. BNPP Sinosure Credit Facility In December 2019, we executed a senior secured term loan facility with BNP Paribas and Skandinaviska Enskilda Banken AB for up to $134.1 million. This loan is split into two facilities, (i) a commercial facility for up to $67.0 million (the "Commercial Facility"), and (ii) a Sinosure facility for up to $67.0 million (the "Sinosure Facility"), which was funded by the lenders under the commercial facility and insured by the China Export & Credit Insurance Corporation ("Sinosure"). These facilities are collectively referred to as the BNPP Sinosure Credit Facility. In March 2020, we drew $42.1 million from this facility to partially finance the purchase and installation of scrubbers on 22 vessels. This borrowing is collateralized by STI Park and STI Fulham . In June 2020, we drew $24.9 million from this facility to partially finance the purchase and installation of scrubbers on 13 vessels. This borrowing is collateralized by STI Elysees . In September 2020, we drew $24.9 million from this facility to partially finance the purchase and installation of scrubbers on 13 vessels. This borrowing is collateralized by STI Orchard . In December 2020, we drew down $9.6 million from our BNPP Sinosure Credit Facility to partially finance the purchase of scrubbers on five vessels. This borrowing is collateralized by STI Hackney . In January 2021, we signed an agreement to extend the availability period under this loan facility to June 15, 2022 from March 15, 2021 (the "Extension Agreement"). In March 2021, we drew $1.9 million from our BNPP Sinosure Credit Facility to partially finance the purchase and installation of a scrubber on an MR product tanker. This borrowing is collateralized by STI Hackney . In March and June 2022, we drew an aggregate $5.1 million from our BNPP Sinosure Credit Facility to partially finance the purchase and installation of scrubbers on two LR1 product tankers and one LR2 product tanker. This borrowing is collateralized by STI Hackney . There are no further amounts available to be drawn on this facility as of December 31, 2022. The Sinosure Facility and the Commercial Facility bear interest at LIBOR plus a margin of 1.80% and 2.80% per annum, respectively. The Sinosure Facility is scheduled to be repaid in 10 semi-annual installments of $5.5 million in aggregate and the Commercial Facility is scheduled to be repaid at the final maturity date of the facility, or October 2025. Our BNPP Sinosure 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 130% of the then aggregate outstanding principal amount of the loans under the credit facility through December 31, 2022 and 135% at all times thereafter. The amounts outstanding as of December 31, 2022 and 2021 were $80.6 million and $86.3 million, respectively, and we were in compliance with the financial covenants as of those dates. 2020 $225.0 Million Credit Facility In May 2020, we executed the 2020 $225.0 Million Credit Facility with a group of European financial institutions. In June 2020 we drew down $101.2 million from this facility to refinance the existing debt on four LR2s ( STI Savile Row , STI Spiga , STI Kingsway and STI Carnaby ). In September 2020, we drew down $43.7 million from this facility to refinance the existing debt on two LR1s ( STI Pride and STI Providence ). In October and November 2020, we drew down an aggregate of $71.8 million from this facility to refinance the existing debt on three LR2 product tankers, STI Nautilus , STI Guard , and STI Gallantry . The remaining availability of $2.2 million under the 2020 $225.0 Million Credit Facility was terminated in December 2020. In December 2021, we closed on the sale and leaseback transactions for two LR2 product tankers ( STI Gallantry and STI Guard ) with Ocean Yield ASA (the “2021 Ocean Yield Lease Financing”, which is described below) and a portion of the proceeds were used to repay the aggregate outstanding indebtedness of $42.3 million relating to these vessels on the 2020 $225.0 Million Credit Facility. During the year ended December 31, 2022, we repaid an aggregate amount of $99.1 million in connection with the sales of STI Pride, STI Providence , STI Saville Row, STI Carnaby and STI Nautilus . This facility has a final maturity of five years from the closing date of the loan, bears interest at LIBOR plus a margin, and the remaining amounts drawn are scheduled to be repaid in equal installments of approximately $1.3 million per quarter (after taking into consideration the above mentioned repayments), in aggregate, with a balloon payment due at maturity. Our 2020 $225.0 Million 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 $1.4 billion. • 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 130% of the then aggregate outstanding principal amount of the loans outstanding and the swap exposure under the credit facility through May 2022 and 140% at all times thereafter. The amounts outstanding as of December 31, 2022 and 2021 were $37.8 million and $145.6 million, respectively, and we were in compliance with the financial covenants as of those dates. 2021 $21.0 Million Credit Facility In February 2021, we drew down $21.0 million on a term loan facility with a European financial institution (the "2021 $21.0 Million Credit Facility"). The proceeds of this loan facility were used to refinance the outstanding debt on STI Madison . The outstanding debt on this loan facility was repaid in full in October 2022. The amount outstanding as of December 31, 2021 was $19.2 million, and we were in compliance with the financial covenants as of that date. 2021 $43.6 Million Credit Facility In November 2021, we closed on a senior secured term loan facility for two LR1 product tankers ( STI Precision and STI Prestige ) with an international financial institution (the “2021 $43.6 Million Credit Facility”). The borrowing amount under the agreement was $43.6 million and part of the proceeds were used to refinance the aggregate outstanding indebtedness relating to these vessels. During the year ended December 31, 2022, we repaid the aggregate outstanding indebtedness of $41.9 million on this facility in connection with the sales of STI Prestige and STI Precision . The amount outstanding as of December 31. 2021 was $43.6 million, and we were in compliance with the financial covenants as of that date. New loan facility commitment In December 2022, we received a commitment from a European financial institution for a credit facility of up to $117.4 million. The credit facility is expected to be used to finance two Handymax product tankers, four MR product tankers and one LR2 product tanker. The credit facility is expected to have a final maturity of five years from the drawdown date of each vessel, and is expected to bear interest at SOFR plus a margin of 1.925% per annum. The terms and conditions of this credit facility, including financial covenants, are similar to those set forth in our existing credit facilities. The credit facility is subject to customary conditions precedent and the execution of definitive documentation, and is expected to close in the second quarter of 2023. Lease financing arrangements The below summarizes the key terms of our lease financing arrangements. For each arrangement, we have evaluated whether, in substance, these transactions are leases or merely a form of financing. As a result of this evaluation, we have concluded that each agreement is a form of financing on the basis that each transaction is a sale and leaseback transaction which does not meet the criteria for a sale under IFRS 15. Accordingly, the cash received in the transfer has been accounted for as a liability under IFRS 9, and each arrangement has been recorded at amortized cost using the effective interest method, with the corresponding vessels being recorded at cost, less accumulated depreciation, on our consolidated balance sheet. The obligations set forth below are secured by, among other things, assignments of earnings and insurances and stock pledges and account charges in respect of the subject vessels. All of the financing arrangements contain customary events of default, including cross-default provisions as well as subjective acceleration clauses under which the lessor could cancel the lease in the event of a material adverse change in the Company’s business. Ocean Yield Lease Financing We assumed the obligations under a lease financing arrangement with Ocean Yield ASA for four LR2 tankers ( STI Sanctity , STI Steadfast , STI Supreme , and STI Symphony ) in connection with the September 2017 acquisition of Navig8 Product Tankers Inc. (the "Ocean Yield Lease Financing). Under this arrangement, each vessel is subject to a 13-year bareboat charter, which expires between February and August 2029 (depending on the vessel). Charterhire, which is paid monthly in advance, includes a fixed payment in addition to a quarterly adjustment based on prevailing LIBOR rates. Monthly principal payments are approximately $0.2 million per vessel gradually increasing to $0.3 million per vessel per month until the expiration of the agreement. The interest component of the leases approximates LIBOR plus 5.40% per annum. We also have purchase options to re-acquire each of the vessels during the bareboat charter period, with the first of such options exercisable beginning at the end of the seven We are subject to certain terms and conditions, including financial covenants, under this arrangement which are summarized as follows: • 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. In September 2022, we gave notice to exercise the purchase option on STI Sanctity . The purchase option price for this vessel is $27.8 million, and the purchase closed in March 2023. In October 2022, we gave notice to exercise the purchase options on STI Steadfast and STI Supreme . The purchase option price is $27.8 million per vessel, and the purchases are expected to occur in the second and third quarters of 2023, respectively. The carrying value of the lease obligations related to these vessels has been classified as current on the consolidated balance sheet as of December 31, 2022. The carrying values of the amounts due under this arrangement (which reflect fair value adjustments made as part of the initial purchase price allocation of the acquisition along with non-cash adjustments to the carrying values that were triggered by the September and October 2022 notifications to exercise purchase options) were $114.3 million and $126.3 million as of December 31, 2022 and 2021, respectively. We were in compliance with the financial covenants as of those dates. BCFL Lease Financing (LR2s) We assumed the obligations of a lease financing arrangement with Bank of Communications Finance Leasing Co Ltd., or BCFL, for three LR2 tankers ( STI Solace , STI Solidarity , and STI Stability ) as part of the September 2017 acquisition of NPTI (the "BCFL Lease Financing (LR2s)"). Under the arrangement, each vessel is subject to a 10-year bareboat charter which expires in July 2026. Charterhire under the arrangement is determined in advance, on a quarterly basis and is calculated by determining the payment based off of the then outstanding balance, the time to expiration and an interest rate of LIBOR plus 3.50% per annum. Using the forward interest swap curve at December 31, 2022, future monthly principal payments are estimated to be $0.3 million per vessel until the expiration of the agreement. We have purchase options to re-acquire each of the subject vessels during the bareboat charter period, with the first of such options exercisable at the end of the four In April 2020, we executed an agreement to increase the borrowing capacity of our BCFL Lease Financing arrangements (LR2s) by up to $1.9 million per vessel to partially finance the purchase and installation of scrubbers on the above vessels. The agreement is for a fixed term of three years at the rate of up to $1,910 per vessel per day to be allocated to principal and interest. In July 2020, we drew $1.9 million to partially finance the purchase and installation of a scrubber on one vessel, and in January 2021, we drew $3.8 million to partially finance the purchase and installation of scrubbers on two vessels. Additionally, we have an aggregate of $0.8 million on deposit in a deposit account as of December 31, 2022 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 sheets as of December 31, 2022 and 2021, respectively. The carrying values of the amounts due under this arrangement (which reflect fair value adjustments made as part of the initial purchase price allocation of the acquisition) were $67.1 million and $77.6 million as of December 31, 2022 and 2021, respectively. We were in compliance with the financial covenants as of those dates. CSSC Lease Financing and CSSC Scrubber Lease Financing We assumed the obligations under a lease financing arrangement with CSSC (Hong Kong) Shipping Company Limited, or CSSC, for eight LR2 tankers ( STI Gallantry, STI Nautilus, STI Guard, STI Guide, STI Goal, STI Gauntlet, STI Gladiator and STI Gratitude ) as part of the September 2017 acquisition of Navig8 Product Tankers Inc. (the "CSSC Lease Financing"). Under the arrangement, each vessel is subject to a 10-year bareboat charter which expire throughout 2026 and 2027 (depending on the vessel). Charterhire under the arrangement is comprised of a fixed repayment amount of $0.2 million per month per vessel plus a variable component calculated at LIBOR plus 4.60% per annum. We have purchase options to re-acquire each of the subject vessels during the bareboat charter period, with the first of such options exercisable at the end of the four Additionally, in September 2019, we executed an agreement with CSSC to increase the borrowing capacity by up to $12.5 million to partially finance the purchase and installation of scrubbers on the eight LR2s (the "CSSC Scrubber Lease Financing"). In December 2019, $11.0 million was borrowed under this arrangement to partially finance the purchase and installation of seven scrubbers, and in August 2020, we drew down $1.6 million to partially finance the purchase and installation of a scrubber on one vessel. The upsized portion of the lease financing bears interest at LIBOR plus a margin of 3.80% per annum, matures two years from the date of the drawdown and is being repaid in monthly installment payments of approximately $0.3 million in aggregate after the repayments noted below. In October and November 2020, we repaid $81.7 million on the CSSC Lease Financing and CSSC Scrubber Lease Financing arrangements, and we paid a $1.6 million prepayment fee when we refinanced the existing debt on STI Nautilus , STI Guard , and STI Gallantry . In September 2021, we amended and restated the terms of the CSSC Lease Financing and CSSC Scrubber Lease Financing arrangements for the remaining five LR2 vessels ( STI Gratitude , STI Gladiator , STI Gauntlet , STI Guide and STI Goal ). Under the terms of the amended and restated agreement, the borrowing amount increased to $140.7 million from $128.9 million at the time of the transaction (which is inclusive of scrubber financing), resulting in a net additional borrowing of $11.8 million. The tenor of the arrangement remained unchanged with each lease scheduled to expire throughout 2026 and 2027, however the amended and restated lease contains an option to extend the lease for each vessel by an additional 24 months. The interest under the amended and restated agreement was reduced to LIBOR plus a margin of 3.50% per annum and the principal balance is scheduled to be repaid in equal installments of approximately $0.2 million per vessel per month. Each lease also contains purchase options to re-acquire each of the subject vessels beginning on the second anniversary date from the effective date of the amended agreement, with a purchase obligation for each vessel upon the expiration of each agreement. Our CSSC Lease Financing arrangement includes a financial covenant that requires the fair market value of each vessel that is leased under this facility to at all times be no less than 125% of the applicable outstanding balance for such vessel. This transaction was accounted for as an amendment to the original financial liability under IFRS 9 as the terms of the amended and restated arrangement were determined to not be substantially different than that of the or |
