Teekay Tankers revealed in its latest set of results that it has agreed a sale and leaseback deal for seven of its tankers.
The company is selling three suezmaxes, two aframaxes and two LR2 product tankers, taking them back on 10- to 12-year bareboat charters at an average rate of around $7,200 per day. Teekay has options to purchase the vessels back from the unnamed buyer at the end of the third year onwards.
Teekay says the transaction will provide funds to refinance the company’s only 2018 balloon debt maturity and will increase liquidity by about $36m.
The company posted an adjusted net loss of $22m for the first quarter, although president and CEO Kevin Mackay expects the tanker market to recover towards the end of 2018 and into 2019.
“Should the tanker market remain under pressure, we have several options available to continue strengthening our balance sheet, including further sale-leaseback transactions which are currently under discussion,” Mackay said.