Scorpio Tankers Inc. announced that it has priced its public offering (the “Offering”) of $25 million aggregate principal amount of fixed rate senior unsecured notes due 2025 (the “Notes”). The Notes will mature on June 30, 2025. The Notes will bear interest at a rate of 7.00% per year, payable in arrears on the 30th day of March, June, September and December of each year, commencing on June 30, 2020. The Company may redeem the Notes in whole or in part, at the Company’s option, at any time (i) on or after June 30, 2022 and prior to June 30, 2023, at a redemption price equal to 102% of the principal amount to be redeemed, (ii) on or after June 30, 2023 and prior to June 30, 2024, at a redemption price equal to 101% of the principal amount to be redeemed, and (iii) on or after June 30, 2024 and prior to maturity, at a redemption price equal to 100% of the principal amount to be redeemed, in each case plus accrued and unpaid interest to, but excluding, the redemption date.
The Company intends to use the net proceeds from the Offering for general corporate purposes and working capital. The Company has granted the underwriters a 30-day option to purchase up to an additional $3.75 million aggregate principal amount of Notes. The Notes will be issued in minimum denominations of $25.00 and integral multiples of $25.00 in excess thereof. The offering is expected to close on May 29, 2020.
In connection with the Offering, the Company has applied to list the Notes on the New York Stock Exchange (the “NYSE”) under the symbol “SBBA.” If approved for listing, trading on the NYSE is expected to commence within 30 days after the Notes are first issued.
B. Riley FBR, Inc., Ladenburg Thalmann & Co. Inc., Janney Montgomery Scott LLC and William Blair & Company, L.L.C. will act as joint book-running managers for the Offering. Boenning & Scattergood, Inc., Incapital LLC, National Securities Corp. and Wedbush Securities Inc. will act as co-managers for the Offering.
Source: Scorpio Tankers Inc.