Teekay spins Aframax Tankers
Shares in Teekay Tankers Ltd., a spin-off of oil tanker operator Teekay Corp., were up on Thursday, their first day of trading.
The shares were priced at $19.50, the high end of the range anticipated for the initial public offering. They gained 78 cents in their first day of trading, to close at $20.28,
Teekay Tankers will own a fleet of nine double-hull Aframax-class oil tankers, which will be managed by an affiliate of Teekay Corp. Teekay Tankers also has an 18-month option to buy up to four Suezmax-class oil tankers from the parent.
Teekay Tankers raised about $180.8 million from the IPO after expenses.
Proceeds will be used to repay a promissory note that will be issued to its parent as partial payment for the fleet.
Teekay Corp. has done other spin-offs of Teekay Offshore Partners and Teekay LNG Partners, which is seen by some companies as a strategy to get better valuation of assets.
Teekay spins Aframax Tankers
