Scorpio Tankers Inc. Announces Redemption of Nordic Bonds and a New Credit Facility

Scorpio Tankers (NYSE:STNG) plans to redeem its 7.5% Senior Unsecured Notes due 2030 and has received a commitment for a new credit facility.

Rhea-AI Summary

Scorpio Tankers (NYSE:STNG) plans to redeem its 7.5% Senior Unsecured Notes due 2030 and has received a commitment for a new credit facility.

The company will redeem $200 million of notes at 106.4% of par and arrange up to $90 million of vessel financing.

Positive

• Redemption of $200 million 7.5% Senior Unsecured Notes due 2030
• Committed new credit facility of up to $90 million
• Facility finances four scrubber-fitted MR newbuilding product tankers
• Credit facility tenor up to seven years from each vessel delivery
• Interest on facility set at SOFR plus 1.20% margin
• Facility terms similar to existing Scorpio Tankers credit facilities

Negative

• Note redemption at 106.4% of par plus accrued interest
• New credit facility adds up to $90 million of debt financing
• Credit facility closing subject to conditions precedent and documentation

Argus Jul 2 session

+5.01% close to close Open Argus

Details

News Market Reaction – STNG

In the Jul 2 session, STNG gained 5.01%, reflecting a notable positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

Market Context

The stock moved +5.0% in the session following this news. A strong positive reaction aligns with Sco...

Analysis

The stock moved +5.0% in the session following this news. A strong positive reaction aligns with Scorpio Tankers’ balance sheet optimization, retiring $200 million of 7.5% notes while securing a lower-margin SOFR + 1.20% facility. Future vessel deliveries and execution risk on financing terms could still affect sentiment.

Key Figures

Notes principal: $200 million Coupon rate: 7.5% Redemption price: 106.4 to par +5 more

Notes principal

$200 million

Aggregate principal of 7.5% Senior Unsecured Notes being redeemed

Coupon rate

7.5%

Interest rate on Senior Unsecured Notes due 2030

Redemption price

106.4 to par

Make-whole redemption price for 7.5% Notes, plus accrued interest

Maturity of notes

January 2030

Original scheduled maturity of 7.5% Senior Unsecured Notes

New credit facility size

up to $90 million

Committed facility from Standard Chartered Bank and DekaBank

Newbuilding tankers

4 vessels

Scrubber-fitted MR product tankers financed by the Credit Facility

Credit facility maturity

7 years

Final maturity from delivery date of each vessel

Credit margin

SOFR + 1.20%

Interest margin on the new Credit Facility

Historical Context

5 past events · Latest: Jun 18

5 events

1. Jun 18

   TCE rate update

   24h Move

   +0.7%

   Stronger disclosed TCE rates and coverage across vessel classes for Q2 2026.

2. May 27

   Asset sales & debt

   24h Move

   -3.3%

   Announced LR2 vessel sales and intention to repay secured debt maturing 2028.

3. May 12

   Convertible notes closing

   24h Move

   -1.6%

   Closed additional 2031 convertible notes and executed concurrent stock repurchase.

4. May 07

   Convertible notes pricing

   24h Move

   -0.3%

   Priced reopening of 2031 convertible notes with concurrent share repurchase plan.

5. May 07

   Convertible notes proposal

   24h Move

   -0.3%

   Proposed reopening of 2031 convertible notes and related short-covering share repurchase.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

senior unsecured notes, make-whole price, credit facility, sofr, +1 more

5 terms

senior unsecured notes financial

"it has issued a redemption notice for its 7.5% Senior Unsecured Notes due 2030"

Senior unsecured notes are a type of loan a company borrows from investors, promising to pay back with interest. They are called "unsecured" because they aren’t backed by specific assets like buildings or equipment, but "senior" because they are paid back before other debts if the company gets into trouble. Investors see them as a relatively safer way for companies to raise money.

make-whole price financial

"expected to be redeemed on July 17, 2026 at a make-whole price of 106.4 to par"

A make-whole price is the cash amount an issuer must pay to bondholders when redeeming debt early to compensate them for the interest they will lose. It equals the bond’s outstanding principal plus an extra sum designed to replace the present value of remaining scheduled interest, using a set market rate. Investors care because it limits losses from early repayment, similar to getting a fair payout if a lender demands you pay off a mortgage ahead of schedule.

credit facility financial

"commitment from Standard Chartered Bank and DekaBank Deutsche Girozentrale for a credit facility of up to $90 million"

A credit facility is a flexible loan arrangement that allows a borrower to access funds up to a set limit whenever needed, similar to a company having an overdraft option on a bank account. It matters to investors because it indicates how easily a business can secure cash when required, affecting its ability to manage expenses, invest, or respond to financial challenges.

sofr financial

"bears interest at SOFR plus a margin of 1.20% per annum"

The Secured Overnight Financing Rate (SOFR) is a market benchmark that measures the cost of borrowing cash overnight using U.S. Treasury securities as collateral. Investors watch SOFR because it acts like a speedometer for short-term interest costs—affecting loan rates, bond yields and the pricing of interest-rate contracts—so movements change borrowing expenses, cash returns and the value of interest-sensitive investments.

financial covenants financial

"terms and conditions of the Credit Facility, including financial covenants, are similar"

Financial covenants are rules written into loan or bond agreements that require a company to keep certain financial measures within agreed limits—examples include minimum cash, maximum debt levels, or minimum profit margins. They act like guardrails for lenders: breaking a covenant can force renegotiation, trigger penalties or default, and quickly affect a company’s available cash and stock value, so investors watch them as early warning signs of financial stress.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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MONACO, July 01, 2026 (GLOBE NEWSWIRE) -- Scorpio Tankers Inc. (NYSE: STNG) (“Scorpio Tankers,” or the “Company”) announced today that it has issued a redemption notice for its 7.5% Senior Unsecured Notes due 2030 and received a commitment for a new credit facility.

Redemption of 7.5% Senior Unsecured Notes

The Company has issued a redemption notice to redeem its outstanding 7.5% Senior Unsecured Notes (the “Notes”). The Notes have an aggregate principal amount outstanding of $200 million, bear a coupon rate of 7.5% and were originally scheduled to mature in January 2030. The Notes are expected to be redeemed on July 17, 2026 at a make-whole price of 106.4 to par plus accrued but unpaid interest.

New Credit Facility

The Company has received a commitment from Standard Chartered Bank and DekaBank Deutsche Girozentrale for a credit facility of up to $90 million (the “Credit Facility”). The Credit Facility will be used to finance a portion of the purchase price of four scrubber-fitted MR newbuilding product tankers, which are currently under construction at Jingjiang Nanyang Shipbuilding Co., Ltd. in China with expected deliveries in 2026 and 2027. The Credit Facility has a final maturity of seven years from the delivery date of each vessel and bears interest at SOFR plus a margin of 1.20% per annum.

The terms and conditions of the Credit Facility, including financial covenants, are similar to those set forth in the Company’s existing credit facilities. The Credit Facility is subject to customary conditions precedent, and the execution of definitive documentation, and is expected to close within the third quarter of 2026.

About Scorpio Tankers Inc.

Scorpio Tankers Inc. is a provider of marine transportation of petroleum products worldwide. Scorpio Tankers Inc. currently owns 79 product tankers (29 LR2 tankers, 36 MR tankers and 14 Handymax tankers) with an average age of 10.2 years. The Company has reached agreements to sell one MR product tanker and four LR2 product tankers, which are expected to close in the third quarter of 2026. The Company has also reached agreements or letters of intent for six MR newbuildings that are currently under construction with deliveries expected in 2026, 2027 and 2030, four LR2 newbuildings with deliveries expected in 2027 and 2029 and two VLCC newbuildings with deliveries expected in 2028. Additional information about the Company is available at the Company’s website www.scorpiotankers.com, which is not a part of this press release.

Forward-Looking Statements

Matters discussed in this press release may constitute forward‐looking statements. The Private Securities Litigation Reform Act of 1995 provides safe harbor protections for forward‐looking statements in order to encourage companies to provide prospective information about their business. Forward‐looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts. The Company desires to take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and is including this cautionary statement in connection with this safe harbor legislation. The words “believe,” “expect,” “anticipate,” “estimate,” “intend,” “plan,” “target,” “project,” “likely,” “may,” “will,” “would,” “could” and similar expressions identify forward‐looking statements.

The forward‐looking statements in this press release are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, management’s examination of historical operating trends, data contained in the Company’s records and other data available from third parties. Although management believes that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond the Company’s control, there can be no assurance that the Company will achieve or accomplish these expectations, beliefs or projections. The Company undertakes no obligation, and specifically declines any obligation, except as required by law, to publicly update or revise any forward‐looking statements, whether as a result of new information, future events or otherwise.

In addition to these important factors, other important factors that, in the Company’s view, could cause actual results to differ materially from those discussed in the forward‐looking statements include unforeseen liabilities, future capital expenditures, revenues, expenses, earnings, synergies, economic performance, indebtedness, financial condition, losses, future prospects, expansion and growth of the Company’s operations, risks relating to the integration of assets or operations of entities that it has or may in the future acquire and the possibility that the anticipated synergies and other benefits of such acquisitions may not be realized within expected timeframes or at all, the failure of counterparties to fully perform their contracts with the Company, the strength of world economies and currencies, general market conditions, including fluctuations in charter rates and vessel values, changes in demand for tanker vessel capacity, changes in the Company’s operating expenses, including bunker prices, drydocking and insurance costs, the market for the Company’s vessels, availability of financing and refinancing, charter counterparty performance, ability to obtain financing and comply with covenants in such financing arrangements, changes in governmental rules and regulations or actions taken by regulatory authorities, the impact of the current and future sanctions that may impact the transportation of petroleum products, potential liability from pending or future litigation, general domestic and international political conditions, which have and may continue to disrupt certain global shipping routes, vessel breakdowns and instances of off‐hires, and other factors. Please see the Company’s filings with the SEC for a more complete discussion of certain of these and other risks and uncertainties.

Contact Information

Scorpio Tankers Inc.
James Doyle – Head of Corporate Development & Investor Relations
Tel: +1 203-900-0559
Email: investor.relations@scorpiotankers.com

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What did Scorpio Tankers (NYSE:STNG) announce on July 1, 2026 about its Nordic bonds?

Scorpio Tankers announced a redemption notice for its 7.5% Senior Unsecured Notes due 2030. According to Scorpio Tankers, $200 million principal will be redeemed on July 17, 2026 at 106.4% of par plus accrued but unpaid interest.

At what price will Scorpio Tankers redeem its 7.5% Senior Unsecured Notes due 2030 (STNG)?

The notes will be redeemed at a make-whole price of 106.4% of par plus accrued but unpaid interest. According to Scorpio Tankers, the redemption is expected to occur on July 17, 2026 for $200 million outstanding principal.

What are the key terms of Scorpio Tankers' new $90 million credit facility (STNG) in 2026?

The new credit facility is for up to $90 million with a seven-year final maturity from each vessel delivery. According to Scorpio Tankers, it bears interest at SOFR plus a 1.20% margin and has covenants similar to existing facilities.

How will Scorpio Tankers use the new credit facility from Standard Chartered and DekaBank?

The facility will help finance four scrubber-fitted MR newbuilding product tankers under construction in China. According to Scorpio Tankers, the vessels are being built at Jingjiang Nanyang Shipbuilding with expected deliveries across 2026 and 2027.

When is Scorpio Tankers' new credit facility (STNG) expected to close?

The credit facility is expected to close within the third quarter of 2026. According to Scorpio Tankers, the closing depends on customary conditions precedent and execution of definitive documentation with Standard Chartered Bank and DekaBank Deutsche Girozentrale.

What interest rate will apply to Scorpio Tankers' new vessel financing facility (STNG)?

The facility will bear interest at SOFR plus a 1.20% per annum margin. According to Scorpio Tankers, the credit line features a seven-year maturity from each vessel’s delivery and terms similar to the company’s existing credit facilities.