NEW YORK (TheStreet) -- Scorpio Tankers (STNG) rose Wednesday after the company priced its upsized offering of $300 million in aggregate principal amount of its 2.375% convertible senior notes due in 2019.
The company increased the offer from $250 million. The notes will bear interest at a rate of 2.375% per year. The initial conversion rate for each $1,000 aggregate principal amount of notes is 82.0075 shares of common stock, which works out to a conversion price of approximately $12.19 a share.
The stock was up 0.91% to $9.47 at 10:19 a.m.
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Separately, TheStreet Ratings team rates SCORPIO TANKERS INC as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate SCORPIO TANKERS INC (STNG) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, impressive record of earnings per share growth, compelling growth in net income and good cash flow from operations. We feel these strengths outweigh the fact that the company shows low profit margins."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- STNG's very impressive revenue growth greatly exceeded the industry average of 3.2%. Since the same quarter one year prior, revenues leaped by 70.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
- STNG's debt-to-equity ratio is very low at 0.23 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 3.26, which clearly demonstrates the ability to cover short-term cash needs.
- SCORPIO TANKERS INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. During the past fiscal year, SCORPIO TANKERS INC turned its bottom line around by earning $0.14 versus -$0.65 in the prior year.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income increased by 706.9% when compared to the same quarter one year prior, rising from $6.61 million to $53.34 million.
- Net operating cash flow has significantly increased by 435.27% to $5.28 million when compared to the same quarter last year. In addition, SCORPIO TANKERS INC has also vastly surpassed the industry average cash flow growth rate of 17.51%.
- You can view the full analysis from the report here: STNG Ratings Report