Teekay Prices New Public Offering
Bermuda-based Teekay Tankers Ltd. announced today [Feb.8] that it has priced its follow-on public offering of 15,000,000 shares of Class A common stock at $4.00 per share.
The offering is expected to close on February 13, 2012, subject to customary closing conditions.
Teekay Tankers has granted the underwriters a 30-day option to purchase up to an additional 2,250,000 shares to cover any over-allotments.
The company expects to use the net offering proceeds to repay a portion of its outstanding debt under its revolving credit facility.
Formed in Bermuda in 2007 by Teekay Corporation as part of its strategy to expand its conventional oil tanker business, Teekay Tankers currently owns a fleet of nine double-hull Aframax tankers and six double-hull Suezmax tankers and time-charters in two double-hull Aframax tankers from third parties, all of which an affiliate of Teekay Corporation manages through a mix of short- or medium-term fixed-rate, time-charter and spot-tanker-market trading.
Teekay Tankers intends to continue to distribute on a quarterly basis all of its cash available for distribution, subject to any reserves established by its board of directors.
Teekay Tankers’ Class A common stock is listed on the New York Stock Exchange under the symbol “TNK”.
The joint book running managers for the offering are Morgan Stanley and Citigroup. The senior co-managers are Credit Suisse and Deutsche Bank Securities. The junior co-managers are ABN AMRO, Credit Agricole CIB and DNB Markets.
