Teekay Tankers Ltd. (Teekay Tankers) (NYSE:TNK) announced yesterday that it has completed and closed the previously-announced sale-leaseback transaction for six Aframax tankers, the Whistler Spirit, Blackcomb Spirit, Emerald Spirit, Garibaldi Spirit, Tarbet Spirit and Peak Spirit.
As a result, the Company has increased its liquidity position by approximately $60 million after the repayment of outstanding debt related to these vessels. This financing was part of the Company’s financing initiatives announced on August 2, 2018.
As part of this financing, the Company will bareboat charter-in these vessels for 9 to 10 years. In addition, the Company has purchase options for each vessel beginning after two years and a purchase obligation for each vessel upon the expiration of each agreement.
“We are pleased to have successfully executed on this significant financing initiative with the completion of this sale-leaseback transaction. We increased our net liquidity position by an additional $60 million, extended our debt maturity profile and continue to work on other liquidity initiatives,” commented Kevin Mackay, Teekay Tankers’ President and CEO.
About Teekay Tankers
Teekay Tankers currently owns a fleet of 46 double-hull tankers, including 26 Suezmax tankers, 11 Aframax tankers, and nine Long Range 2 (LR2) product tankers, and has six Aframax tankers and four Suezmax tankers related to capital leases and two contracted time charter-in vessels. Teekay Tankers’ vessels are employed through a mix of short- or medium-term fixed rate time charter contracts and spot tanker market trading. The Company also owns a Very Large Crude Carrier (VLCC) through a 50 percent-owned joint venture. In addition, Teekay Tankers owns a ship-to-ship transfer business. Teekay Tankers was formed in December 2007 by Teekay Corporation as part of its strategy to expand its conventional oil tanker business.
Teekay Tankers’ common stock trades on the New York Stock Exchange under the symbol “TNK.”