Scorpio Tankers Announces Baby Bond Issuance

Following the saying ‘get it while the getting is good’ a new baby bond have been announced this morning.

Giant tanker ship owner Scorpio Tankers (STNG) has announced a new baby bond issue.

The senior unsecured note is due in 2025 and should trade under the permanent ticker of SBBA when it hits the NYSE. The issue will not trade on the OTC grey market, but those that want to buy sooner will need to call their broker with the CUSIP once it is announced.

The preliminary prospectus can be read here.

STNG has had decent earnings lately--but like all ship owners it can swing to poor earnings quickly–make sure to understand the risk with shippers.

STNG had a baby bond which matured on 5/15/2020 and thus is no longer trading.

mcg was right on this with EarlyBird chiming in.

4 thoughts on “Scorpio Tankers Announces Baby Bond Issuance”

  1. “Overall, the pandemic has had very little impact on the global transportation of crude oil,”

    If I’m not mistaken, Scorpio ships only distillates (“product”), not crude.

    1. GM David…feel free to substitute ‘petroleum products’ for ‘crude oil’ in my comment below. The important news (imo) is that tanker rates have held up during the pandemic, which bodes well for both the crude and refined petroleum product transport business going forward.

  2. I tried to read thru all the Gobbeligook but stopped reading when I got to the part where it said “Senior UNSECURED Obligations”. As I said a couple of weeks ago I have reached a point in my life now where Iam ONLY going to buy high quality companies preferreds. Did end up buying 6,000 shares of “NI+B” last week. Thank You to my friend AFFINITY.

    1. FWIW, the recently redeemed Scorpio Tanker 6.75% senior unsecured note (SBNA) never missed a beat during the recent market crash, only very briefly dipping below par value. Compared to the fluctuations of some of the mega-bank preferred shares, it performed like a champion. Granted, SBNA was coming to the end of its term (while most bank preferreds are noncumulative and perpetual), but its notable how well the shares held up during the panic. Overall, the pandemic has had very little impact on the global transportation of crude oil, and I’d be very comfortable purchasing the new unsecured notes with a five year term.

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