Bigger STNG

Scorpio Tankers (STNG) has upsized its sale of convertible notes to $300m on favourable pricing terms, finance sources said today.
Emanuele Lauro

Emanuele Lauro, Scorpio's chief executive

The New York-listed products-tanker owner completed the deal today with a 2.375% coupon rate and a five-year term.

The notes are convertible to Scorpio shares at a 30% premium to the $9.38 closing price today.

Underwriters hold an over-allotment option on 20% of the issue.

STNG said in a statement Tuesday morning that it would use $150m of the issue to buy back shares, supplementing an earlier $100m buyback programme.

This was based on a target raise of $250m. It was not clear whether the buyback fund would increase based on the upsized issue. But finance sources said they did not expect Scorpio to wait long to begin clawing back shares.

STNG has argued that its stock is undervalued by investors, therefore leading it to repurchase shares. The owner has one of the world's largest orderbooks in products tankers.

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