Scorpio Tankers to price $250 million five-year convertibles at 2.125%-2.625%, up 27.5%-32.5%

By Rebecca Melvin

New York, June 24 – Scorpio Tankers Inc. launched $250 million of convertible senior notes due 2019 that were seen pricing after the close Tuesday.

The offering was talked to yield 2.125% to 2.625% with an initial conversion premium of 27.5% to 32.5%, according to a syndicate source.

The Rule 144A deal has a $50 million greenshoe and was being marketed by BofA Merrill Lynch.

The bonds are non-callable for three years and then are provisionally callable after that if shares exceed 130% of the conversion price.

Proceeds will be used for a concurrent share repurchase of up to $150 million and for general corporate purposes, including additional potential repurchases of its common stock.

Monaco-based Scorpio is an oil tanker business.

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