STNG News & Events

Scorpio Tankers has entered into agreements to sell four LR2 product tankers, a letter of intent to purchase two newbuilding MR product tankers and its intention to repay all outstanding secured debt due 2028. The company has entered into agreements to sell four LR2 product tankers consisting of two 2014 built LR2 product tankers, STI Broadway and STI Condotti, and two 2015 built LR2 product tankers, STI Winnie and STI Lauren, for $285.8Min aggregate. The sales of these vessels are expected to close within Q2 or Q3. The company has entered into a letter of intent to purchase two scrubber-fitted MR newbuilding product tankers for $46.25M per vessel. The vessels are expected to be constructed in China and deliveries are expected in 1Q30. Aside from a 10% initial deposit, the remaining payments are not due until 2028 or later. The company intends to make unscheduled prepayments totaling $367.8M in aggregate on certain of its secured credit facilities. This amount represents the aggregate debt outstanding under credit facilities scheduled to mature in 2028. Further, the company intends to permanently cancel two undrawn revolver capacities. These debt prepayments and undrawn revolver cancellations are expected to occur in Q2, which would result in the termination of these credit facilities.

Scorpio Tankers announced that it priced a private offering of $200.0 million aggregate principal amount of additional 1.75% convertible senior notes due 2031. The offering size was increased from the announced offering size of $150.0 million aggregate principal amount of New Notes. The initial conversion rate for each $1,000 principal amount of Notes is 9.9615 shares of Common Stock, equivalent to a conversion price of approximately $100.39 per share. The conversion rate and conversion price will be subject to adjustment upon the occurrence of certain events.