Scorpio Tankers Raises $253.6M via 1.75% Notes, Buys Back 649K Shares
Scorpio Tankers issued $230M in additional 1.75% convertible senior notes due 2031 at 110.25% of par, raising $253.6M gross (1.0% yield) and net $248.8M after expenses. The company used ~$55M to repurchase 649,427 shares at $84.69 each and will deploy remaining proceeds for general corporate purposes.
1. Offering Details
Scorpio Tankers closed a private offering of $230.0 million aggregate principal amount of 1.75% convertible senior notes due April 15, 2031, including full exercise of a $30.0 million overallotment option. The New Notes were priced at 110.25% of par plus accrued interest, generating gross proceeds of approximately $253.6 million and net proceeds of about $248.8 million after discounts, commissions and expenses.
2. Stock Repurchase and Use of Proceeds
The company used approximately $55.0 million of the net proceeds to repurchase 649,427 common shares at $84.69 per share. The balance of the net proceeds will fund general corporate purposes, supporting liquidity and balance sheet flexibility.
3. Convertible Note Terms and Features
The notes bear interest at 1.75% per annum, payable semi-annually, and mature April 15, 2031. They are convertible at a rate of 9.9615 shares per $1,000 principal (conversion price ~$100.39, a 35% premium to April 7 trading levels) under specified conditions starting January 15, 2031, and are redeemable at par plus accrued interest if the stock trades above 130% of the conversion price for a set period.