Teekay Tankers has agreed to buy 12 modern suezmaxes tankers for $662m from Principal Maritime Tankers (Princimar), the investment vehicle owned by private equity firm Apollo Global Management.
The vessels have an average age of 5.5 years and will be delivered to Teekay Tankers by the end of October, after which they will operate in the spot market.
Teekay says the acquisition will make it owner of the largest fleet of suezmax vessels in the world, with 22 such vessels under its ownership.
The NYSE-listed company has secured a $400m debt facility from its four main lenders to finance the acquisition. It also intends to issue new Class A common shares at a weighted average price of $6.76 per share. Some $50m of these shares will go to Principal, $30m to Teekay Corporation and $60m to a group of institutional investors.
The $122m balance of the purchase price will be funded using Teekay Tankers’ existing liquidity, which stood at $230m according to the company’s second-quarter 2015 financial results.
“Including the five aframax tankers we acquired earlier this year, this acquisition will increase Teekay Tankers’ owned fleet by over 60% and solidifies our position as the largest owner and operator of mid-size crude oil tankers,” said Kevin Mackay, Teekay Tankers’ CEO.
“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,” Mackay said.
The vessels are: Princimar Confidence (150,000 dwt, built 2006); Princimar Courage (158,000 dwt, built 2013), Princimar Faith (160,000 dwt, built 2005), Princimar Grace (158,500 dwt, built 2011), Princimar Hope (158,600 dwt, built 2011), Princimar Integrity (158,500 dwt, built 2012), Princimar Joy (156,500 dwt, built 2010), Princimar Loyalty (150,000 dwt, built 2006), Princimar Pride (158,000 dwt, built 2012), Princimar Promise (158,000 dwt, built 2011), Princimar Strength (156,500 dwt, built 2010) and Princimar Truth (159,200 dwt, built 2007).