By Susanna Moon
Chicago, May 10 – Scorpio Tankers Inc. said it has agreed to issue new convertible notes in exchange for $175 million of its 2.375% convertible senior notes due 2019.
The notes will be exchanged for $175 million principal amount of new 3% convertible senior notes due May 15, 2022 under separate, privately negotiated agreements with the holders, according to the company announcement.
The conversion rate is initially 250 common shares per $1,000 principal amount, which is an initial conversion price of about $4.00 per share.
The conversion price is a 36.52% premium to the company’s closing price on Wednesday.
In addition, holders who convert their exchange notes in connection with a make-whole fundamental change will receive a make-whole premium in the form of an increase in the conversion rate.
After the exchange, about $173.5 million of the existing convertibles will remain outstanding.
Monaco-based Scorpio is an oil tanker business.
Exchange notes
Issuer: | Scorpio Tankers Inc.
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Issue: | Convertible senior notes
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Amount: | $175 million
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Maturity: | May 15, 2022
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Coupon: | 3%
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Conversion premium: | 36.52%
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Conversion price: | $4.00 per share
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Conversion rate: | 250 common shares per $1,000 principal amount
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Call option: | Beginning Jan. 1, 2019 or before that under some circumstances
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Put option: | At par for fundamental change
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Pricing date: | May 10
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Settlement date: | May 14
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Stock ticker: | NYSE: STNG
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Stock price: | $2.93
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