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HAMILTON, BERMUDA -- (Marketwire) -- 04/16/12 -- Teekay Corporation (NYSE:TK) (Teekay or the Company) announced today that it has reached an agreement to sell to its publicly-traded subsidiary, Teekay Tankers Ltd. (NYSE:TNK) (Teekay Tankers), 13 of the Company's 17 directly-owned conventional tankers and related time-charter contracts, debt facilities and other assets and rights, for an aggregate purchase price of approximately $455 million.
Transaction Summary
-- Teekay to sell to Teekay Tankers a fleet of seven crude oil tankers and
six product tankers, along with related time-charter out contracts, debt
facilities and an interest rate swap, for an aggregate price of
approximately $455 million.
-- As partial consideration, Teekay will receive $25 million in new Teekay
Tankers Class A shares at a price of $5.60 per share.
-- Nine of the 13 vessels to be sold currently operate under fixed-rate
time-charters.
-- The sale includes the assumption by Teekay Tankers of outstanding debt
of approximately $180 million in term loans and approximately $290
million in available revolving credit facilities, of which approximately
$40 million will be undrawn.
-- Teekay will grant Teekay Tankers a right of first refusal on any
conventional tanker opportunities developed by Teekay for a period of
three years from the closing date.
-- Additional details of the transaction will be provided by Teekay Tankers
management during a conference call scheduled for Tuesday, April 17,
2012 at 9 am (ET).
The table below summarizes the vessels to be sold as well as the time-charter out contract details:
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Year
Vessel Built Class Employment Charter Expiry Charter Rate
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Crude Oil Tankers
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1. Zenith Spirit 2009 Suezmax Spot n/a n/a
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2. Pinnacle Spirit 2008 Suezmax Time-charter Oct 30, 2014 $21,000
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3. Summit Spirit 2008 Suezmax Time-charter Oct 30, 2014 $21,000
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4. Godavari Spirit 2004 Suezmax Time-charter Dec 31, 2012 $21,000
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5. Australian Spirit 2004 Aframax Time-charter Jan 30, 2016 $21,000
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6. Axel Spirit 2004 Aframax Time-charter Dec 29, 2016 $19,500
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7. Americas Spirit 2003 Aframax Time-charter Sep 30, 2015 $21,000
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Product Tankers
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8. Galway Spirit 2007 LR2 Spot n/a n/a
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9. Limerick Spirit 2007 LR2 Spot n/a n/a
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10.