Scorpio Tankers to Redeem $200M 7.5% Notes, Secure $90M Credit Facility
STNG•Scorpio Tankers will redeem its $200 million 7.5% Senior Unsecured Notes due 2030 on July 17, 2026 at a make-whole price of 106.4 plus accrued interest. The company secured a $90 million credit facility at SOFR plus 1.20% to fund four scrubber-fitted MR tanker newbuildings delivering in 2026 and 2027.
1. Redemption of 7.5% Senior Unsecured Notes
Scorpio Tankers issued a redemption notice for its $200 million 7.5% Senior Unsecured Notes originally maturing in January 2030. The notes are set to be redeemed on July 17, 2026 at a make-whole price of 106.4 to par plus accrued but unpaid interest, eliminating a high-coupon liability.
2. $90M Credit Facility for Scrubber-Fitted MR Tankers
The company received a commitment from Standard Chartered Bank and DekaBank for a $90 million credit facility bearing interest at SOFR plus a 1.20% margin. This facility, with seven-year maturities from each vessel’s delivery, will partially finance four scrubber-fitted MR newbuildings under construction in China with expected deliveries in 2026 and 2027.
3. Capital Structure and Fleet Expansion Impact
By replacing higher-cost debt with a lower-rate credit facility, Scorpio Tankers is positioned to lower interest expenses and enhance liquidity. The financing also supports its strategy of expanding the fleet with eco-efficient scrubber-fitted vessels, potentially boosting earnings and strengthening the balance sheet as newbuilds come online.
