Teekay Tankers Ltd. Acquisition of 13 Vessels
Bermuda registered Teekay Tankers Ltd. has reached an agreement to acquire from Teekay Corporation, a fleet of 13 double-hull conventional oil and product tankers and related time-charter contracts, debt facilities and other assets and rights, for an aggregate purchase price of approximately $455 million.
Teekay Tankers will acquire a fleet of seven crude oil tankers and six product tankers, along with related time-charter out contracts, debt facilities and an interest rate swap, for an aggregate price of approximately $455 million. As partial consideration, Teekay will receive $25 million in new Teekay Tankers Class A shares issued at a price of $5.60 per share.
Nine of the 13 vessels to be acquired currently operate under favorable fixed-rate time-charters. Immediately following the transaction, Teekay Tankers’ fixed coverage is expected to increase from approximately 29 percent to approximately 43 percent for the 12 months commencing July 1, 2012.
Acquisition includes the assumption by Teekay Tankers of outstanding debt of approximately $180 million in term loans and approximately $290 million in available revolving credit facilities, of which approximately $40 million will be undrawn. As a result of the transaction, Teekay Tankers’ liquidity is expected to increase to approximately $400 million, which the Company believes will provide flexibility to pursue further accretive growth opportunities.
