Teekay Tankers Ltd. has agreed to acquire a fleet of 12 Suezmax tankers currently owned by Principal Maritime Tankers for an aggregate purchase price of USD 662 million.
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. Once delivered, Teekay will own and operate a fleet of 22 Suezmax tankers.
The vessels included in the transaction are scheduled to be delivered to Teekay Tankers by the end of October 2015 and are expected to operate in the spot tanker market upon or soon after delivery.
Teekay Tankers has received commitments from four of its lenders to provide a new debt facility of approximately USD 400 million to finance the buy, which will be secured by the acquired vessels.
In addition, Teekay Tankers has agreed to issue new Class A common shares in the amount of USD 50 million to Principal, USD 30 million to Teekay Corporation and USD 60 million to a group of institutional investors, at a weighted average price of USD 6.76 per share. The remaining amount of the purchase price will be funded from Teekay Tankers’ existing liquidity.
“Teekay Tankers will become one of the largest owners of modern Suezmax tankers at the right point in the tanker market cycle when positive market fundamentals support continued strength in spot tanker rates,” said Kevin Mackay, Teekay Tankers’ Chief Executive Officer.
”Including the five Aframax tankers we acquired earlier this year, this acquisition will increase Teekay Tankers’ owned fleet by over 60 percent and solidifies our position as the largest owner and operator of mid-size crude oil tankers. With a larger fleet, we are better positioned take advantage of the growing demand for Suezmaxes resulting from greater long-haul Suezmax movements from the Atlantic to Pacific basins as well as the niche intra-regional voyages that are increasingly stretching Suezmax tonnage supply.”
This acquisition transaction has been approved by the Board of Directors of both Teekay Tankers and Principal and is subject to customary closing conditions.