Scorpio Tankers Inc. (NYSE: STNG) announced agreements to sell four LR2 product tankers for $285.8 million and plans to repay $367.8 million in secured debt due in 2028.

The vessel sales include two 2014-built tankers, STI Broadway and STI Condotti, and two 2015-built tankers, STI Winnie and STI Lauren. The transactions are expected to close in the second or third quarter of 2026.

The company also entered a letter of intent to purchase two scrubber-fitted MR newbuilding product tankers for $46.25 million each. The vessels will be constructed at Jiangsu Yangzi-Mitsui Shipbuilding Co., Ltd. in China with expected delivery in the first quarter of 2030. The letter of intent requires execution of definitive documentation.

Scorpio Tankers plans unscheduled debt prepayments totaling $367.8 million, including a previously announced $10.7 million prepayment. The amount represents outstanding debt under five credit facilities scheduled to mature in 2028: a $225.0 million revolving credit facility, a $49.1 million credit facility, a $117.4 million credit facility, a $1.0 billion credit facility, and a $94.0 million credit facility.

The company intends to permanently cancel undrawn capacity under the $225.0 million and $1.0 billion revolving credit facilities. These debt prepayments and cancellations are expected in the second quarter of 2026, resulting in termination of the credit facilities.

Scorpio Tankers currently owns 83 product tankers consisting of 32 LR2 tankers, 37 MR tankers and 14 Handymax tankers with an average age of 10.2 years. The company has additional agreements to sell two MR and seven LR2 product tankers expected to close in the second or third quarter of 2026.