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Scorpio Tankers mulls bond issue to refinance debtScorpio Tankers mulls bond issue to refinance debt

Run of investor calls underway may be followed with a five-year bond to refinance existing bond.

Gary Howard, Middle East correspondent

January 13, 2025

1 Min Read
Image: Scorpio Tankers

Scorpio Tankers announced plans to issue a new five-year bond after completing a series of investor calls which began on January 13. The bond issue remains subject to market conditions.

Proceeds from the new five-year bonds will be used to refinance $70.6m of existing 7.0% senior unsecured notes due to mature on June 30, 2025, as well as for general corporate purposes, the company said.

On December 12, Scorpio Tankers announced a new $500m revolving credit facility expected to close by the end of the first quarter 2025. At the end of 2024, Scorpio Tankers estimated its outstanding debt at $878m. At the end of Q3 2024, bank facilities accounted for 83% of the company’s debt, with the remainder split between lease financing and the outstanding bonds.

Scorpio Tankers is the world's largest product tanker owner, with a current owned and leased fleet of 99 ships (39 LR2s, 46 MRs and 14 Handymaxes) with an average age of 8.8 years. 

Scorpio Tankers currently has no ships on order, but in an investor presentation on January 7 noted a global orderbook of just over 20% of the world product tanker fleet against the fleet’s average age of 14 years. The orderbook is currently 50% LR2, 36% MRs and 12% LR1, with the remainder handymaxes.

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About the Author

Gary Howard

Middle East correspondent

Gary Howard is the Middle East Correspondent for Seatrade Maritime News and has written for Seatrade Cruise, Seatrade Maritime Review and was News Editor at Lloyd’s List. Gary’s maritime career started after catching the shipping bug during a research assignment for the offshore industry. Working out of Seatrade's head office in the UK, he also produces and contributes to conference programmes for Seatrade events including CMA Shipping, Seatrade Maritime Logistics Middle East and Marintec. 

Gary’s favourite topics within the maritime industry are decarbonisation and wind-assisted propulsion; he particularly enjoys reporting from industry events.

Conferences & Webinars

Gary Howard regularly moderates at international maritime events. Below you’ll find a list of selected past conferences and webinars.

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