Teekay Tankers completes sale-and-leaseback of six Aframaxes

Sep 14 2018

Teekay Tankers has completed and closed a previously-announced sale-leaseback transaction for six Aframaxes.

The vessels are 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 about $60 mill after the repayment of outstanding debt related to these vessels. This deal was part of the company’s financing initiatives announced on 2nd August, 2018.


As part of the financing, Teekay Tankers will bareboat charter-in these vessels for nine 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 mill, extended our debt maturity profile and continue to work on other liquidity initiatives,” commented Kevin Mackay, Teekay Tankers’ President and CEO.


Elsewhere within the group, Teekay Offshore Partners has announced the following changes to Teekay Offshore GP board, the general partner of the Partnership.


Brookfield Business Partners, together with its institutional partners, had nominated two individuals, Craig Laurie and Denis Turcotte, who were appointed to the Board, replacing David Levenson and Bradley Weismiller, who were appointed by Brookfield in September, 2017.


“On behalf of our board and leadership team, I want to thank David and Bradley for their significant contributions in developing our business and financial strategies since Brookfield completed its strategic investment in the Partnership last year and welcome Craig and Denis to the TOO GP board,” said Bill Utt, TOO GP’s chairman.


Laurie is a Managing Partner in Brookfield’s Private Equity Group, overseeing capital markets, finance and planning. Turcotte is a Managing Partner in Brookfield’s Private Equity Group, responsible for business operations.


In addition, Teekay LNG Partners has reappointed Kenneth Hvid, Teekay Corp’s president and CEO, to the board, replacing Vince Lok, Teekay’s executive vice president and CFO.


Bill Utt was also appointed to the board. He currently serves as the director and chairman of Teekay and Teekay Offshore.


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