Scorpio Tankers Completes Initial Public Offering
Scorpio Tankers Inc. (NYSE: STNG) announced that it has closed on its previously announced sale of 12,500,000 shares of common stock in its initial public offering, and received net proceeds of $149.6m, after deducting underwriters' discounts and offering expenses. The underwriters have a 30-day option that commenced on March 30, 2010, to purchase up to an additional 1,875,000 shares of common stock to cover over-allotments, if any. Morgan Stanley & Co. Incorporated and Dahlman Rose & Company, LLC are acting as joint book-running managers and representatives of the underwriters, who include Fearnley Fonds ASA, Nordea Bank Norge ASA, DnB NOR Markets, Inc. and Fortis Bank (Nederland) N.V.
Frontline Completes $21.5M Placement and Purchase
Frontline Ltd., has completed a private placement of $21.5M in new equity, by issuing 600,000 shares to several institutional investors at a purchase price of NOK 246 per share. Carnegie ASA, Enskilda Securities ASA and Fearnley Fonds ASA acted as placement agents for the issue. The proceeds from the offering will be used to equity finance the acquisition of three Suezmax tankers. The vessels are built in 1989 - 1990. The purchase price for the vessels are totally USD 66.3 million. The vessels are sister vessels of four vessels already controlled by Frontline. The deal should not be seen as a strategic move away from modern double hull tonnage, but should be seen as an opportunistic deal to maximize Frontline's cash flow in the current strong tanker market.
