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Teekay Tankers to buy 12 modern Suezmax tankers for $662 million

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Staff writer ▼ | August 8, 2015
Teekay Tankers has agreed to acquire a fleet of 12 Suezmax tankers currently owned by Principal Maritime Tankers, a portfolio company of funds managed by affiliates of Apollo Global Management, for an aggregate purchase price of $662 million.
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Shipping industry   New tankers are coming to Teekay
The acquisition is expected to be immediately accretive to Teekay Tankers’ earnings, free cash flow and net asset value per share and, when combined with the Company’s existing fleet of 10 Suezmaxes, will make Teekay Tankers one of the largest owners of Suezmax tankers in the world.

With an average age of only 5.5 years, the 12 Suezmaxes to be acquired will reduce the average age of Teekay Tankers’ fleet by 1.2 years.

The vessels included in the transaction are scheduled to deliver to Teekay Tankers by the end of October 2015 and are expected to operate in the spot tanker market upon or soon after delivery.

Financing for this acquisition has been pre-arranged. Teekay Tankers has received commitments from four of its key lenders to provide a new debt facility of approximately $400 million to be secured by the acquired vessels.

In addition, Teekay Tankers has agreed to issue new Class A common shares in the amount of $50 million to Principal, $30 million to Teekay Corporation and $60 million to a group of institutional investors, at a weighted average price of $6.76 per share.

The remaining amount of the purchase price will be funded from Teekay Tankers’ existing liquidity.

As at June 30, 2015, Teekay Tankers had liquidity of approximately $230 million, which included $37.3 million of net proceeds received during the second quarter of 2015 from the issuance of common units under the Company’s continuous offering program.


 

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