Teekay Tankers, TIL Create Tanker Giant

Teekay Tanker owners and operators Teekay Tankers and Tanker Investments Ltd. (TIL) have entered into an agreement to merge their respective fleets. Namely, Tanker Investments has agreed to an all-stock merger with Teekay Tankers at an exchange ratio of 3.30 Teekay Tankers Class A common shares for each TIL common share. Teekay Tankers currently owns an 11.3% ownership interest in Tanker Investments, and following the consummation of the merger, Tanker Investments will become a subsidiary of Teekay Tankers. Upon completion of the merger, Tanker Investments shareholders will own approximately 30% of the combined entity, consisting of 62 conventional tankers, including three in-chartered vessels. The parties informed that the move would create the worlds largest publicly-listed mid-sized conventional tanker company, and result combined total assets of USD 2.4 billion. As part of the transaction, Teekay Tankers will assume some USD 350 million of TILs long-term debt, which includes two revolving credit facilities and a term loan, and on a pro forma basis as of March 31, 2017, the transaction adds USD 117 million of liquidity to Teekay Tankers. The merger is expected to close in the third quarter of 2017. Teekay Tankers separately acquired the remaining 50 percent interest in Teekay Corporations commercial and technical management operations Teekay Operations for USD 27 million, consolidating all commercial and technical management operations under Teekay Tankers.