| 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, 2023 and December 31, 2022: At December 31, In thousands of U.S. dollars 2023 2022 Current portion of bank debt (1) $ 220,965 $ 31,504 Sale and leaseback liabilities (2) 206,757 269,145 Current portion of long-term debt 427,722 300,649 Non-current portion of bank debt and bonds (3) 939,188 264,106 Sale and leaseback liabilities (4) 221,380 871,469 $ 1,588,290 $ 1,436,224 (1) The current portion at December 31, 2023 was net of unamortized deferred financing fees of $5.0 million. The current portion at December 31, 2022 was net of unamortized deferred financing fees of $0.5 million. (2) The current portion at December 31, 2023 was net of unamortized deferred financing fees of $0.8 million and prepaid interest of $0.3 million. 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. (3) The non-current portion at December 31, 2023 was net of unamortized deferred financing fees of $20.6 million. The non-current portion at December 31, 2022 was net of unamortized deferred financing fees of $4.0 million. (4) The non-current portion at December 31, 2023 was net of unamortized deferred financing fees of $2.3 million. The non-current portion at December 31, 2022 was net of unamortized deferred financing fees of $7.4 million. The following is a roll-forward of the activity within debt (current and non-current, and inclusive of IFRS 16 - lease liabilities), by facility, for the year ended December 31, 2023: Activity Balance as of December 31, 2023 consists of: In thousands of U.S. dollars Carrying Value as of December 31, 2022 Drawdowns Repayments Other Activity (1) Carrying Value as of December 31, 2023 Current Non-Current Hamburg Commercial Bank Credit Facility 33,732 — (33,732) — — — — Prudential Credit Facility 39,286 — (5,546) — 33,740 33,740 — 2019 DNB / GIEK Credit Facility 38,338 — (38,338) — — — — BNPP Sinosure Credit Facility 80,576 — (10,909) — 69,667 10,909 58,758 2020 $225.0 Million Credit Facility 37,765 — (37,765) — — — — 2023 $225.0 Million Credit Facility — 225,000 (25,425) — 199,575 33,900 165,675 2023 $49.1 Million Credit Facility — 49,088 (3,462) — 45,626 4,615 41,011 2023 $117.4 Million Credit Facility — 117,394 (8,504) — 108,890 17,007 91,883 2023 $1.0 Billion Credit Facility — 901,000 (336,093) — 564,907 116,149 448,758 2023 $94.0 Million Credit Facility — 94,000 (1,092) — 92,908 9,666 83,242 Ocean Yield Lease Financing 114,273 — (89,484) 454 25,243 3,035 22,208 BCFL Lease Financing (LR2s) 67,058 — (68,310) 1,252 — — — CSSC Lease Financing 119,165 — (121,279) 2,114 — — — BCFL Lease Financing (MRs) 53,202 — (31,068) (481) 21,653 21,653 — AVIC Lease Financing 77,769 — (77,769) — — — — 2020 CMBFL Lease Financing 38,090 — (38,090) — — — — 2020 TSFL Lease Financing 40,607 — (40,607) — — — — 2020 SPDBFL Lease Financing 80,616 — (43,753) 763 37,626 37,626 — 2021 AVIC Lease Financing 83,662 — (7,252) 1,157 77,567 77,567 — 2021 CMBFL Lease Financing 68,045 — (6,520) — 61,525 6,520 55,005 2021 TSFL Lease Financing 49,997 — (4,380) 865 46,482 46,482 — 2021 CSSC Lease Financing 48,631 — (48,631) — — — — 2021 $146.3 Million Lease Financing 133,699 — (133,699) — — — — 2021 Ocean Yield Lease Financing 63,933 — (5,850) — 58,083 5,866 52,217 2022 AVIC Lease Financing 112,620 — (9,169) — 103,451 9,168 94,283 IFRS 16 - Leases - 3 MR (See Note 6) 21,138 — (36,933) 15,795 — — — IFRS 16 - Leases - $670.0 Million (see Note 6) 475,939 — (480,396) 4,457 — — — Unsecured Senior Notes Due 2025 70,451 — — 45 70,496 — 70,496 $ 1,948,592 $ 1,386,482 $ (1,744,056) $ 26,421 $ 1,617,439 $ 433,903 $ 1,183,536 Less: deferred financing fees (12,758) (27,627) — 11,571 (28,814) (5,846) (22,968) Less: prepaid interest expense (3,735) — 3,400 — (335) (335) — Total $ 1,932,099 $ 1,358,855 $ (1,740,656) $ 37,992 $ 1,588,290 $ 427,722 $ 1,160,568 (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; and (iii) our Unsecured Senior Notes Due 2025, as discussed below. Interest Rate Benchmark Reform Interest in most of our financing agreements has historically been based on published rates for LIBOR. The ICE Benchmark Administration (“IBA”), the administrator of LIBOR, with the support of the United States Federal Reserve and the United Kingdom’s Financial Conduct Authority, ceased the publication of all U.S. Dollar LIBOR tenors on June 30, 2023. In response to the anticipated discontinuation of LIBOR, the Alternative Reference Rate Committee, a committee convened by the Federal Reserve that includes major market participants, proposed an alternative rate to replace U.S. Dollar LIBOR: the Secured Overnight Financing Rate, or “SOFR.” During the year ended December 31, 2023, we transitioned our existing loan and lease financing agreements from U.S. Dollar LIBOR to SOFR plus a credit spread adjustment (“CSA”) which varied from zero basis points to 26.161 basis points depending on the financing arrangement. We have applied the practical expedient pursuant to the Amendments to IFRS 9 – Financial Instruments (IBOR reform) as our secured bank debt and lease financing arrangements are carried at amortized cost, and therefore the change in the effective interest rate on these arrangements that has arisen from IBOR reform was deemed to be economically equivalent to the previous basis. Accordingly, no gain or loss was recognized upon transition. 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. 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 . The amount outstanding as of December 31, 2022 was $33.7 million. The outstanding debt on this loan facility was repaid in full in September 2023 and the loan facility was terminated. 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, with the primary purpose of refinancing STI Clapham, STI Camden and STI Acton . The Prudential Credit Facility bears interest at the benchmark rate (LIBOR and SOFR plus a CSA) plus a margin of 3.00% per annum. 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. In December 2023, we gave notice to repay the outstanding balance in January 2024 (see Note 23). The outstanding balance has been classified as current on the consolidated balance sheet as of December 31, 2023. The amounts outstanding as of December 31, 2023 and 2022 were $33.7 million and $39.3 million, respectively. 2019 DNB / GIEK Credit Facility In November 2019, we executed a term loan facility with DNB Bank ASA and the Norwegian Export Credit Guarantee Agency (“GIEK”) for $55.5 million (the "2019 DNB/GIEK Credit Facility"). 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." The amount outstanding as of December 31, 2022 was $38.3 million. The outstanding debt on this loan facility was repaid in full in August 2023 and the loan facility was terminated. 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") and is currently being used to finance five of our vessels. These facilities are collectively referred to as the BNPP Sinosure Credit Facility. During the years ended December 31, 2020, 2021 and 2022, we drew down an aggregate $101.5 million, $1.9 million and $5.1 million, respectively. The Sinosure Facility and the Commercial Facility bear interest at the benchmark rate (LIBOR and SOFR plus a CSA) plus a margin of 1.80% and 2.80% per annum, respectively. The Sinosure Facility is scheduled to be repaid in semi-annual principal installments, in aggregate, of $5.5 million through October 2024, $3.4 million in April 2025 and $0.9 million in October 2025. 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, 2023 and 2022 were $69.7 million and $80.6 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 and originally used it to finance nine vessels (seven LR2s and two LR1s). The amount outstanding as of December 31, 2022 was $37.8 million. The outstanding debt on this loan facility was repaid in full in August 2023 and the loan facility was terminated. 2023 $225.0 Million Credit Facility In January 2023, we executed the 2023 $225.0 Million Credit Facility with a group of European financial institutions. In February and March 2023, we drew down $184.9 million and $40.1 million, respectively, and 13 product tankers ( STI Opera , STI Duchessa , STI Venere , STI Virtus , STI Aqua , STI Dama , STI Regina , STI San Antonio , STI Yorkville , STI Battery , STI Milwaukee , STI Madison , and STI Sanctity ) were collateralized under this facility as part of these drawdowns. The 2023 $225.0 Million Credit Facility has a final maturity of five years from the signing date and bears interest at SOFR plus a margin of 1.975% per annum. The borrowings for the 11 MRs are expected to be repaid in equal quarterly installments of $0.63 million per vessel for the first two years, and $0.33 million per vessel for the remaining term of the loan, with a balloon payment due at maturity. The borrowings for the two LR2s are expected to be repaid in equal quarterly installments of $0.8 million per vessel for the first two years, and $0.45 million per vessel for the remaining term of the loan, with a balloon payment due at maturity. Our 2023 $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 $1.5 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 140% of the then aggregate of (i) principal amount of the loans outstanding and (ii) negative value of any hedging exposure under such facility. The amount outstanding as of December 31, 2023 was $199.6 million and we were in compliance with the financial covenants as of that date. 2023 $49.1 Million Credit Facility In February 2023, we executed the 2023 $49.1 Million Credit Facility with a North American financial institution. In March 2023, we drew down $49.1 million and two LR2 product tankers ( STI Rose and STI Rambla ) were collateralized under this facility as part of this drawdown. The 2023 $49.1 Million Credit Facility has a final maturity of five years from the drawdown date and bears interest at SOFR plus a margin of 1.90% per annum. The borrowing is expected to be repaid in equal, aggregate, installments of $1.2 million per quarter, with a balloon payment upon maturity. Our 2023 $49.1 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 $1.6 billion plus (i) 25% of the cumulative positive net income (on a consolidated basis) for each fiscal quarter commencing on or after October 1, 2022 and (ii) 50% of the net proceeds of new equity issues occurring on or after December 31, 2022. • 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 150% of the then aggregate outstanding principal amount of the loans. The amount outstanding as of December 31, 2023 was $45.6 million and we were in compliance with the financial covenants as of that date. 2023 $117.4 Million Credit Facility In May 2023, we executed the 2023 $117.4 Million Credit Facility with a European financial institution. This facility was fully drawn upon execution and seven vessels ( STI Battersea , STI Wembley , STI Texas City , STI Meraux , STI Mayfair , STI St. Charles , and STI Alexis ) were collateralized under this facility upon drawdown. The 2023 $117.4 Million Credit Facility has a final maturity of five years from the drawdown date of each vessel and bears interest at SOFR plus a margin of 1.925% per annum. The borrowing is expected to be repaid in equal, aggregate, installments of $4.3 million per quarter, with a balloon payment upon maturity. Our 2023 $117.4 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 $1.0 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 150% of the then aggregate of (i) principal amount of the loans outstanding and (ii) negative value of any hedging exposure under such credit facility. The amount outstanding as of December 31, 2023 was $108.9 million and we were in compliance with the financial covenants as of that date. 2023 $1.0 Billion Credit Facility In July 2023, we executed the 2023 $1.0 Billion Credit Facility with a group of financial institutions for up to $1.0 billion, consisting of a term loan and a revolving credit facility. Upon execution, we drew down $440.6 million (split evenly between the term loan and the revolver) and 21 vessels ( STI Lobelia, STI Lavender, STI Jermyn, STI Steadfast, STI Magic, STI Mystery, STI Marvel, STI Millennia, STI Magister, STI Mythic, STI Modest, STI Maverick, STI Miracle, STI Maestro, STI Mighty, STI Magnetic, STI Seneca, STI Brooklyn, STI Manhattan, STI Bronx, and STI Tribeca ) were collateralized under this facility as part of this drawdown. In August 2023, we drew down $135.8 million (split evenly between the term loan and the revolver) and five vessels ( STI Supreme, STI Spiga, STI Kingsway, STI Sloane and STI Condotti ) were collateralized under this facility as part of this drawdown . In September 2023, we repaid $288.2 million on the revolving portion of this credit facility, which may be re-borrowed in the future . In November 2023, we drew down $202.3 million (split evenly between the term loan and the revolver) and eight vessels ( STI Lotus, STI Lily , STI Gladiator , STI Gratitude , STI Goal , STI Maximus, STI Leblon and STI Bosphorus ) were collateralized under this facility as part of this drawdown . In December 2023, we drew down $122.3 million (split evenly between the term loan and the revolver) and five vessels ( STI Donald C Trauscht, STI Esles II, STI Stability, STI Solace and STI Solidarity ) were collateralized under this facility as part of these drawdowns . The 2023 $1.0 Billion Credit Facility has a final maturity of June 30, 2028 and bears interest at SOFR plus a margin of 1.95% per annum. The amounts drawn as of December 31, 2023, inclusive of the currently available $288.2 million that was repaid under the revolving portion of the facility, are scheduled to be repaid and/or permanently reduced in aggregate amounts of $29.0 million per quarter through June 30, 2025 and gradually decreasing from $22.3 million to $18.9 million per quarter in years three five Our 2023 $1.0 Billion 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 $1.5 billion. • 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 at all times be no less than 140% of the then aggregate principal amount of the loans outstanding. The amount outstanding as of December 31, 2023 was $564.9 million and we were in compliance with the financial covenants as of that date. As of December 31, 2023, the amounts available under the term loan and the revolver were $49.5 million and $337.7 million, respectively (see Note 23). 2023 $94.0 Million Credit Facility In September 2023, we executed the 2023 $94.0 Million Credit Facility with DekaBank Deutsche Girozentrale for up to $94.0 million. Upon execution, we drew down $43.8 million and two vessels ( STI Marshall and STI Grace ) were collateralized under this facility as part of this drawdown. In October 2023, we drew down $50.2 million and two vessels ( STI Guide and STI Gauntlet ) were collateralized under this facility as part of this drawdown. This 2023 $94.0 Million Credit Facility has a final maturity of five years from the drawdown date of each vessel and bears interest at SOFR plus a margin of 1.70% per annum. The facility is scheduled to be repaid in aggregate repayments of $2.4 million per quarter with a balloon payment due at maturity. Our 2023 $94.0 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 $1.5 billion. • 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 at all times be no less than 143% of the then aggregate of (i) principal amount of the loans outstanding and (ii) negative value of any hedging exposure under such credit facility. The amount outstanding as of December 31, 2023 was $92.9 million and we were in compliance with the financial covenants as of that date. 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. Given the favorable market conditions during the years ended December 31, 2023 and 2022, we were able exercise purchase options and repay the lease obligations on 53 vessels. In all circumstances, we submitted binding notices to exercise the purchase options prior to the end of the lease term in accordance with the existing provisions of the leases. As these instruments were accounted for as financial liabilities at amortized cost under IFRS 9, the submission of the purchase option notice triggered a re-assessment of the cash flows associated with the liability. As almost all of these instruments were floating rate financial liabilities, the carrying values of the liabilities did not change with the exception of purchase option fees incurred on certain arrangements, all of which are detailed below. For fixed rate instruments, a nominal gain or loss was recorded upon re-assessment. 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 was 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 benchmark rates (LIBOR and SOFR plus a CSA). 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 the prevailing benchmark rate 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 was $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 was $27.8 million per vessel, and the purchases closed in May 2023 and August 2023. The carrying value of the lease obligations related to these vessels was 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 notifications to exercise purchase options) were $25.2 million and $114.3 million as of December 31, 2023 and 2022, 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 was subject to a 10-year bareboat charter which was scheduled to expire in July 2026. Charterhire under the arrangement was determined in advance, on a quarterly basis and was calculated by determining the payment based off of the then outstanding balance, the time to expiration and an interest rate of the benchmark rate (LIBOR and LIBOR as of June 30, 2023) plus 3.50% per annum. 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 was 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. In December 2023, we exercised the purchase options on all of the vessels under this arrangement and repaid the outstanding indebtedness of $58.4 million as part of these transactions, thus terminating the leases. Additionally, we had an aggregate of $0.8 million on deposit in a deposit account, in accordance with the terms and conditions of this facility, which were not freely available and was recorded as non-current Restricted Cash on our consolidated balance sheets as of December 31, 2022. This deposit account was released after the exercise of the purchase options on the vessels in December 2023. CSSC 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 NPTI (the "CSSC Lease Financing"). This arrangement was amended and restated in 2019 and 2021 to, among others, increase the borrowing capacity and reduce the margin. The tenor of the amended and restated lease remained unchanged, with each lease scheduled to expire throughout 2026 and 2027; however, the amended and restated lease contained 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 the prevailing benchmark rate (LIBOR and SOFR plus a CSA) plus a margin of 3.50% per annum and the principal balance was scheduled to be repaid in equal installments of approximately $0.2 million per vessel per month. Each lease also contained 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. In October and November 2020, we repaid $81.7 million and paid a $1.6 million prepayment fee when we refinanced the existing debt on STI Nautilus , STI Guard , and STI Gallantry . In October 2023, we exercised the purchase options on all of the remaining vessels under this arrangement, repaid the outstanding indebtedness of $110.4 million, and paid purchase option fees of $1.7 million as part of these transactions. These leases were terminated as a result of these transactions. BCFL Lease Financing (MRs) In September 2017, we entered into agreements to sell and lease back five 2012 built MR product tankers ( STI Amber , STI Topaz , STI Ruby , STI Garnet and STI Onyx ) with Bank of Communications Finance Leasing Co Ltd., or BCFL, for a sales price of $27.5 million per vessel (the "BCFL Lease Financing (MRs)"). The financing for STI Topaz , STI Ruby and STI Garnet closed in September 2017, the financing for STI Onyx closed in October 2017, and the financing for STI Amber closed in November 2017. Each agreement was for a fixed term of seven ten In April 2020, we executed an agreement to increase the borrowing capacity by up to $1.9 million per vessel to partially finance the purchase and installation of scrubbers on the above vessels. The agreement was 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 $5.8 |
