HAMILTON, BERMUDA--(Marketwired - May 8, 2014) - Teekay Tankers Ltd. (Teekay Tankers or the Company) (NYSE:TNK) 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.
"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 (NYSE:TK) 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. (OSLO:TIL). 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".
FORWARD LOOKING STATEMENTS
This release contains forward-looking statements (as defined in Section 21E of the Securities Exchange Act of 1934, as amended) which reflect management's current views with respect to certain future events and performance, including statements regarding: the Company's financial strength and ability to take advantage of, and invest in, future growth opportunities; the expected timing of the sale of the Company's two VLCCs to Tanker Investments; the intended use of proceeds from the sale of the two VLCCs; and the expected total return from the Company's $115 million investment in the VLCC term loans. The following factors are among those that could cause actual results to differ materially from the forward-looking statements, which involve risks and uncertainties, and that should be considered in evaluating any such statement: changes in the production of or demand for oil; changes in trading patterns significantly affecting overall vessel tonnage requirements; greater or less than anticipated levels of tanker newbuilding orders or greater or less than anticipated rates of tanker scrapping; changes in applicable industry laws and regulations and the timing of implementation of new laws and regulations; delays preventing Tanker Investments from taking delivery of the two vessels in the expected timeframe; failure of Teekay Tankers Board of Directors and its Conflicts Committee to approve future acquisitions of vessels that may be offered by Teekay Corporation or third parties; and other factors discussed in Teekay Tankers' filings from time to time with the United States Securities and Exchange Commission, including its Report on Form 20-F for the fiscal year ended December 31, 2013. The Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company's expectations with respect thereto or any change in events, conditions or circumstances on which any such statement is based.