Monaco-based tanker owner Scorpio Tankers has priced its USD 50 million public offering of senior unsecured notes that will mature on June 1, 2019.
To bear interest at a rate of 8.25% per year, the notes will be payable in arrears on the first day of March, June, September and December of each year, commencing on June 1, 2017.
The company said that it may redeem the notes, at its option, in whole or in part, at any time on or after December 1, 2018, at a redemption price equal to 100% of the principal amount to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date.
The underwriters of the offering were granted a 30-day option to purchase up to an additional USD 7.5 million of the notes on the same terms and conditions.
Scorpio Tankers said that the offering is expected to close on March 31, 2017.
The net proceeds from the offering would be used to fund the tender offer of the company’s existing 7.50% senior unsecured notes due in October 2017. Any remaining net proceeds will be used for general corporate purposes and working capital, Scorpio Tankers informed.
Stifel and Janney Montgomery Scott will act as joint book-running managers for the offering. Ladenburg Thalmann, Wunderlich and Drexel Hamilton will act as co-managers for the offering.