TIL agrees to acquire four modern tankers
As previously announced, TIL agrees to acquire four modern tankers, the company said in its press release.
The Company has entered into the following transactions :
A Memorandum of Agreement ("MoA") to acquire one 2012 - built coated Aframax tanker entered into between a third party , as seller and the Company , through its subsidiary T.I.L. VI L . L . C . , as buyer . All subjects in the MoA were lifted May 8, 2014 and t he expected delivery is estimated to be in late May or early June 2014 . The purchase price for the vessel is US$ 47.5 million. If the vessel is not ready for delivery by July 15 , 2014, the Company has the option to cancel the MoA, and, if the seller fails to complete a legal transfer of the vessel due to proven negligence, the Company can claim compensation for documented losses and expenses incurred due to the non - delivery. Upon delivery, the vessel will continue to trade in the Teekay Taurus Pool.
A MoA to acquire one 2012 - built coated Aframax tanker entered into between a third party , as seller and the Company, through its subsidiary T.I.L. VII L . L . C . , as buyer. All subjects in the MoA were lifted May 8, 2014 and the expected delivery is estimated to be in late May or early June 2014. The purchase price for the vessel is US$ 47.5 million . If the vessel is not ready for delivery by July 15, 2014, the Company has the option to cancel the MoA, and, if the seller fails to complete a legal transfer of the ves sel due to proven negligence, the Company can claim compensation for documented losses and expenses incurred due to the non - delivery. Upon delivery, the vessel will continue to trade in the Teekay Taurus Pool.
A purchase agreement to acquire the entire membership interests in the companies Alpha VLCC L.L.C. and Beta VLCC L.L.C., each of which owns one 2010 - built Very Large Crude Carrier. The agreement was entered into between Teekay Tankers Ltd. and the Compa ny, all subjects in the purchase ag reement were lifted May 8, 2014 , and the transaction was completed on May 9, 2014 with the Company’s subsidiary T.I.L. Holdings Limited as the nominated purchaser . The consideration for the entire membership interests is US$ 154 million.
The Company intends to finance the acquisition of the four vessels with existing cash balances and by drawing a portion of the Company's new US$ 200 million revolving credit facility, which is expected to be finalized in May 2014.
About Tanker Investments Ltd.: Tanker Investments Ltd. is a specialized investment company focused on the oil tanker market. Tanker Investments Ltd. was formed in January 2014 by Teekay Tankers Ltd. and Teekay Corporation to opportunistically acquire, operate and sell modern second - hand tankers to benefit from an expected recovery in the current cyclical low of the tanker market. Tanker Investment's fleet consist of 13 vessels, including six vessels scheduled for delivery in the second quarter of 2014. This information is subject to the disclosure requirements to section 5 - 12 of the Norwegian Securities Trading Act.
