Teekay Tankers Ltd. Acquires Two Suezmax Tankers
Hamilton, Bermuda – March 28, 2008 – Teekay Tankers Ltd. (Teekay Tankers) today announced that it has
agreed to acquire two double-hull Suezmax-class oil tankers, the 2002-built Ganges Spirit and the 2003-built
Narmada Spirit, from Teekay Corporation (Teekay) for a total cost of $186.9 million. Teekay Tankers expects to
complete the acquisition in early April 2008, and to finance the acquisition by assuming $114 million of existing
debt related to the vessels and utilizing Teekay Tankers’ undrawn credit facility for the remainder of the purchase
price.
The Narmada Spirit is currently employed in spot market trading as part of the Teekay-owned Gemini Pool. The
Ganges Spirit will be employed on its pre-existing time-charter contract that expires in May 2012 at a base rate of
$30,500 per day and also operates as part of the Gemini Pool. The terms of this contract also will entitle Teekay
Tankers to the first $3,000 per day of the vessel’s earnings in the pool above the base rate and fifty percent of the
earnings above $33,500 per day.
“We are very pleased that Teekay Tankers has made its first acquisition only three months after its initial public
offering,” commented Mr. Bjorn Moller, Teekay Tankers Chief Executive Officer. “By expanding into Suezmax
tankers utilizing our low-cost debt financing, we will take the first step towards our goal of increasing dividends per
share by executing on our business strategy of expanding our fleet through accretive acquisitions. The mix of spot
trading and a time-charter contract associated with these vessels allows Teekay Tankers’ investors to participate in
the upside of the spot tanker market, with spot Suezmax rates currently between $60,000 and $120,000 per day
depending upon the trade route, while reducing downside risk,” Mr. Moller added. “Teekay Tankers intends to
continue to expand its fleet through accretive acquisitions with the goal of maximizing dividends per share. In
future acquisitions, we will continue to manage our capital structure and chartering mix in an effort to provide our
investors with the optimal risk, return balance.”
About Teekay Tankers Ltd.
Teekay Tankers Ltd. is a Marshall Islands corporation recently formed by Teekay Corporation (NYSE: TK) as part
of its strategy to expand its conventional oil tanker business. Teekay Tankers Ltd. currently owns a fleet of nine
double-hull Aframax-class oil tankers, which an affiliate of Teekay Corporation manages through a mix of short- or
medium-term fixed-rate time-charter contracts and spot tanker market trading. In addition, Teekay Corporation has
agreed to offer to Teekay Tankers Ltd., within 18 months following the completion of its initial public offering on
December 18, 2007, the opportunity to purchase up to four existing Suezmax-class oil tankers, including the two
vessels described above in this news release. Teekay Tankers Ltd. intends to distribute on a quarterly basis all of its
cash available for distribution, subject to any reserves established by its board of directors.
Teekay Tankers’ common stock trades on the New York Stock Exchange under the symbol “TNK”.
Teekay Tankers Ltd.
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