Scorpio Tankers Inc. Bolsters Financial Flexibility with 5-Year Senior Unsecured Bond Issue

Scorpio Tankers Inc. (NYSE: STNG), a leading provider of marine transportation of petroleum products worldwide, has successfully placed USD 200 million of new senior unsecured bonds in the Nordic bond market. The new bonds, due to mature in January 2030, will pay a fixed coupon of 7.5% per annum, payable semi-annually in arrears. The net proceeds from the bond issue will be used to refinance the Company’s existing USD 70.6m senior unsecured notes and for general corporate purposes.

The bond issue was led by DNB Markets, Arctic Securities AS, and Pareto Securities AS as Global Coordinators and Joint Bookrunners, with Nordea Bank Abp, Filial i Norge, Credit Agricole Corporate and Investment Bank, and Clarksons Securities AS acting as Joint Lead Managers. The successful placement of these bonds demonstrates Scorpio Tankers' ability to access capital markets and diversify its funding sources, enhancing its financial flexibility.



The bond issue will have a positive impact on Scorpio Tankers' debt-to-equity ratio and overall financial health. Before the bond issue, Scorpio Tankers' debt-to-equity ratio was approximately 0.314, based on its outstanding debt of USD 878m and a market cap of 2788979968 USD. After refinancing the USD 70.6m notes, the new debt-to-equity ratio will be approximately 0.297, indicating a slight reduction in the Company's leverage.

Additionally, the bond issue allows Scorpio Tankers to refinance its existing notes at a lower interest rate, reducing its annual interest expenses and improving its cash flow position. This will help the Company maintain liquidity and navigate market fluctuations more effectively.

Scorpio Tankers' ability to access capital markets and refinance its debt at lower interest rates reflects positively on its financial health and investor confidence. The Company's current stock price of 55.2 USD and a market cap of 2788979968 USD, along with the positive analyst recommendations (buy) and the number of analysts covering the company (11), further validate its strong financial position.

In conclusion, Scorpio Tankers Inc.'s successful placement of 5-year senior unsecured bonds will enhance the Company's financial flexibility, reduce its debt-to-equity ratio, and improve its overall financial health. This bond issue demonstrates the Company's ability to navigate market fluctuations and maintain liquidity, positioning it well for future growth and success in the global marine transportation industry.