Teekay Tankers Ltd. today announced that it has agreed to sell its two 2010-built Very Large Crude Carriers (VLCCs) to Tanker Investments Ltd. (Tanker Investments) for $154 million. Teekay Tankers assumed full ownership of the two VLCCs in late-March 2014, which previously secured the Company's $115 million investment in term loans. The vessels are expected to be delivered to Tanker Investments in early-May 2014, the company said in its press release.
"After recently assuming full ownership of these two VLCCs, we are pleased to complete their sale at a price that has allowed us to realize more than the full expected return on our initial $115 million term loan investment," commented Bruce Chan, Teekay Tankers' Chief Executive Officer. "Proceeds raised from the sale of these two vessels will be used to reduce amounts outstanding under our revolving credit facility, thereby further strengthening Teekay Tankers' financial flexibility."
About Teekay Tankers Ltd.
Teekay Tankers currently owns a fleet of 27 double-hull vessels, including 11 Aframax tankers, 10 Suezmax tankers, three Long Range 2 (LR2) product tankers, three Medium-Range (MR) product tankers and has one time-chartered in Aframax tanker, which vessels an affiliate of Teekay Corporation manages through a mix of short- or medium-term fixed-rate time-charter contracts and spot tanker market trading. The Company also owns a VLCC through a 50 percent-owned joint venture. In addition, Teekay Tankers owns a minority interest in Tanker Investments Ltd. Teekay Tankers was formed in December 2007 by Teekay Corporation as part of its strategy to expand its conventional oil tanker business.