March 18, 2010
Scorpio Tankers raises IPO target
Scorpio Tankers, a Marshall Islands incorporated company that last month filed with the SEC to raise up to $150 million in an initial public offering, has raised its sights. Today it filed a Form F-1 with the SEC amending its earlier filing.
In today's F-1, the company says "we believe that recent downward pressure on tanker values will present attractive opportunities for ship operators that have the necessary capital resources. Following the completion of this offering, we expect to have approximately $172.9 million of available cash from the net proceeds of this offering, based on an assumed offering price of $15 per share, which represents the midpoint of the price range set forth on the cover of this prospectus. We have also obtained a commitment letter for a new $150,000,000 senior secured credit facility that we expect to enter into after the closing of this offering."
Scorpio intends to "purchase additional modern tankers ranging in size from approximately 35,000 deadweight tons, or dwt, to approximately 200,000 dwt, and that generally are not more than five years old. We may purchase secondhand vessels that meet our specifications or newbuilding vessels, either directly from shipyards or from the current owners with shipyard contracts. The timing of these acquisitions will depend on our ability to identify suitable vessels on attractive purchase terms."
Scorpio's founder, Chairman and Chief Executive Officer, Mr. Emanuele Lauro, is a member of the Lolli-Ghetti family, which has been involved in shipping since the early 1950s through the Italian company Navigazione Alta Italia, or NAI. The Lolli-Ghetti family owns and controls the Scorpio Group, which includes Simon Financial Limited, or Simon, which prior to this offering was Scorpio Tankers' ultimate parent company and controlling party.
Scorpio Tanker's President, Mr. Robert Bugbee, also has a senior management position at Scorpio Group, and was formerly the President and Chief Operating Officer of OMI Corporation, or OMI, which was a publicly traded shipping company.
According to the filing, Scorpio Tankers owns and operate three Panamax tanker vessels that have an average age of 6.6 years and were acquired from entities affiliated with Emanuele Lauro and other members of the Lolli-Ghetti family in exchange for all the company's common shares.