Teekay Plans Share Offering to Buy Tankers

6 April 2010 (Last Updated April 6th, 2010 18:30)

Teekay Tankers said it is planning to sell publicly seven million shares of class-A common stock to help finance the purchase of three oil tankers from its parent company, Teekay Corporation. Bermuda-based Teekay said it will also issue unregistered shares of the stock with an aggregate

Teekay Tankers said it is planning to sell publicly seven million shares of class-A common stock to help finance the purchase of three oil tankers from its parent company, Teekay Corporation.

Bermuda-based Teekay said it will also issue unregistered shares of the stock with an aggregate value of about $32m to its parent.

The rest of the $168.7m purchase price will come from money borrowed under Teekay’s revolving credit facility, it said.

The company expects the transactions to increase its fleet capacity by 23% to about 1.8 million dwt.

Teekay Tankers said it will grant underwriters a 30-day option to purchase an additional 1.05 million shares of the stock to cover any over-allotments.