Upon delivery, the VLCC will be time chartered to a major Chinese shipping company for five years, the companies said. The time charter includes a fixed floor rate, coupled with a profit-sharing component.
The contract price for the VLCC is $98 million, to be financed with about $70 million through commercial banks, and the remaining $28 million sourced from the joint venture partners. Teekay Tankers expects its existing revolving credit facility to fund its $14 million share.
In addition, Teekay Tankers has also received an offer from Teekay Corp. to acquire the 2004-built Aframax tanker Esther Spirit and the 2003-built Suezmax tanker Iskmati Spirit. The Esther Spirit is operating under a fixed-rate time-charter through July 2012 and the Iskmati Spirit is trading in the spot market as part of Teekay’s Gemini Suezmax tanker pool.
About $100 million in undrawn revolving credit availability secured by the two vessels is also part of the offer from Teekay Corp. If accepted, Teekay Tankers anticipates financing this acquisition by drawing on its existing revolving credit facility, which currently has more than $200 million available, partially as a result of its recently completed follow-on equity offering. If approved, the transaction is expected to be completed in November.
Brokerage Compliance Symposium
The day before F3. Every compliance issue you face - fraud exposure, carrier liability, FMCSA rules, cargo theft, insurance gaps - navigated by attorneys and operators defining best practices in a changing industry.
F3 Awards Dinner
The night before F3. FreightTech100 companies honored. FreightTech 25 and Shipper of Choice winners revealed live. Cocktail reception into dinner and live music - 300 industry leaders in one purpose-built room.
F3: Future of Freight Festival
Industry-defining keynotes, rapid-fire technology demos, and industry leaders networking in experiences across Chattanooga - plus the inaugural F3 Awards Dinner featuring the FreightTech and Shipper of Choice reveals.
The day before F3. Every compliance issue you face - fraud exposure, carrier liability, FMCSA rules, cargo theft, insurance gaps - navigated by attorneys and operators defining best practices in a changing industry.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register NowThe night before F3. FreightTech100 companies honored. FreightTech 25 and Shipper of Choice winners revealed live. Cocktail reception into dinner and live music - 300 industry leaders in one purpose-built room.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register NowIndustry-defining keynotes, rapid-fire technology demos, and industry leaders networking in experiences across Chattanooga - plus the inaugural F3 Awards Dinner featuring the FreightTech and Shipper of Choice reveals.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register Now