By Susanna Moon
Chicago, May 16 – Scorpio Tankers Inc. said it has agreed to exchange another $13.5 million of its 2.375% convertible senior notes due 2019 for new convertible notes.
This brings the total exchange tally to $188.5 million, up from $175 million as announced May 10.
The aggregate principal amount includes notes tendered for exchange by one of the holders in the offer, according to the company announcement.
After the exchange, about $160 million of the existing convertibles will remain outstanding.
The company said on May 10 that it had agreed to exchange $175 million of the 2.375% convertibles for $175 million principal amount of new 3% convertible senior notes due May 15, 2022 under separate, privately negotiated agreements with the holders.
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.
Monaco-based Scorpio is an oil tanker business.
Exchange notes
| Issuer: | Scorpio Tankers Inc.
|
| Issue: | Convertible senior notes
|
| Amount: | $188.5 million, up from $175 million
|
| Maturity: | May 15, 2022
|
| Coupon: | 3%
|
| Conversion premium: | 36.52%
|
| Conversion price: | $4.00 per share
|
| Conversion rate: | 250 common shares per $1,000 principal amount
|
| Call option: | Beginning Jan. 1, 2019 or before that under some circumstances
|
| Put option: | At par for fundamental change
|
| Pricing date: | May 10
|
| Settlement date: | May 14
|
| Add-on date: | May 16
|
| Stock symbol: | NYSE: STNG
|
| Stock price: | $2.93
|
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