By Rebecca Melvin
New York, June 25 – Scorpio Tankers Inc. priced an upsized $300 million of five-year convertible senior notes at par after the market close Tuesday to yield 2.375% with an initial conversion premium of 30%, according to a syndicate source.
The Rule 144A offering was upsized from an initially talked $250 million of notes. There is a $60 million greenshoe, which was upsized from $50 million.
Pricing came at the midpoint of talk for a 2.125% to 2.625% coupon and 27.5% to 32.5% premium.
The notes were sold via BofA Merrill Lynch and UBS Securities LLC.
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.
| Issuer: | Scorpio Tankers Inc.
|
| Issue: | Convertible senior notes
|
| Amount: | $300 million, upsized from $250 million
|
| Greenshoe: | $60 million, upsized from $50 million
|
| Maturity: | 2019
|
| Bookrunners: | BofA Merrill Lynch, UBS Securities LLC
|
| Co-manager: | Clarkson Capital Markets
|
| Coupon: | 2.375%
|
| Price: | Par
|
| Yield: | 2.375%
|
| Conversion premium: | 30%
|
| Conversion price: | $12.19
|
| Conversion ratio: | 82.0075 shares
|
| Calls: | Non-callable for three years and then provisionally callable at 130% price hurdle
|
| Pricing date: | June 24
|
| Settlement date: | June 30
|
| Distribution: | Rule 144A
|
| Price talk: | 2.125%-2.625%, up 27.5%-32.5%
|
| Stock symbol: | Nasdaq: STNG
|
| Stock reference price: | $9.38 as of close June 24
|
| Market capitalization: | $1.83 billion
|
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