Scorpio Tankers plans $300 million convertible notes offering

Scorpio Tankers Inc. (NYSE: STNG) announced plans to offer $300 million in convertible senior notes due 2031 through a private placement to qualified institutional buyers. The Monaco-based tanker company also granted initial purchasers an option to buy an additional $45 million in notes within 13 days of issuance.

The company intends to use proceeds from the offering to repurchase shares of its common stock concurrently with the closing. Scorpio Tankers expects to buy back shares sold short by initial investors in privately negotiated transactions at the closing price on the offering's pricing date.

The notes will be senior, unsecured obligations with semiannual interest payments, maturing April 15, 2031. Upon conversion, the company may settle in cash, common stock, or a combination of both. Interest rates, conversion rates, and other terms will be determined at pricing.

Starting April 20, 2029, Scorpio Tankers may redeem the notes if its common stock price exceeds 130% of the conversion price for a specified period and other conditions are met. Noteholders may require repurchase for cash at principal value plus accrued interest if certain corporate events occur.

The company plans to use remaining proceeds for general corporate purposes. The notes and any conversion shares have not been registered under the Securities Act and will only be offered to qualified institutional buyers under Rule 144A.

Scorpio Tankers operates 88 product tankers with an average age of 10.1 years, including 33 LR2 tankers, 41 MR tankers, and 14 Handymax tankers. The company has agreements to sell four vessels in the second quarter of 2026 and orders for 10 new vessels with deliveries expected through 2029.

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