Scorpio Tankers Inc (NYSE:STNG) has priced its previously reported underwritten public offering of 30 million shares, par value $0.01 a share, at $3.00 a share. Scorpio Services Holding Limited will buy an aggregate of around 6.666 million shares at the proposed public offering price. This offering was projected to close on December 1, 2017.
Scorpio Tankers reported that the net proceeds of the public offering are projected to be used to strengthen the firm’s balance sheet as well as for general corporate purposes. The firm has allowed the underwriters a 30-day option to buy up to an additional 4.5 million Common Shares. As per the update, the lead underwriter and book runner in this public offering is Clarksons Platou Securities, Inc. Pareto Securities AS and BTIG, LLC are serving as book runners and joint lead managers in the Offering. Fearnley Securities Inc., Seaport Global Securities, Skandinaviska Enskilda Banken AB, ABN AMRO Securities (USA) LLC, ING Financial Markets LLC and BNP Paribas Securities Corp. are co-managers in the Offering.
Scorpio Tankers’ shares are listed on the NYSE under the ticker “STNG.” Following the public offering, analysts at Stifel have lowered their STNG target price to $6 per share from $7 a share, stating that the firm is “playing defense” in attempting to boost liquidity and bolster the balance sheet ahead of a debt repayment schedule.
On November 14, 2017, Scorpio Board announced a quarterly cash dividend of $0.01 a share, payable on or close to December 28, 2017 to shareholders as of the record date, December 13, 2017. As of the close of November 14, 2017, there shares outstanding stood at around 281 million.
Last month, Scorpio Tankers extended the time charter-in deal for an MR that is presently time chartered-in for another six months at $13,250 a day with effect from December 2017. The firm even has an alternative to extend the charter for another one at $14,500 a day.