Teekay Tankers Ltd.
NYSE : TNK

Teekay Tankers Ltd.

December 18, 2014 09:26 ET

Teekay Tankers Agrees to Acquire Five Modern Aframax Tankers

HAMILTON, BERMUDA--(Marketwired - Dec. 18, 2014) - Teekay Tankers Ltd. (Teekay Tankers or the Company) (NYSE:TNK) today announced that it has agreed to acquire four coated Aframax tankers and one uncoated Aframax tanker for an aggregate purchase price of approximately $230 million. The five vessels, which are expected to be delivered in the first quarter of 2015, were constructed in 2008, 2010 and 2011 at top tier shipyards in Japan and China. Upon delivery, the vessels will trade in the Teekay-managed Taurus LR2 Pool and Aframax RSA.

"We are pleased to announce this acquisition of five, high quality, modern secondhand tankers at an attractive price, which, when combined with the increase in our in-chartered fleet over the past six months, is consistent with our stated strategy of increasing our exposure to an improving spot tanker market," commented Kevin Mackay, Chief Executive Officer of Teekay Tankers. "Combined with our existing fleet and in-chartered portfolio, these new vessels will increase our fleet size to 43 vessels. In addition, the transaction provides optionality to trade the four coated Aframaxes in the crude or product tanker markets and, with an average age of only 3.8 years for the five vessels, enhances the age profile of our fleet."

"Spot tanker rates for crude and large product tankers for the fourth quarter of 2014 are averaging higher than the previous quarter," Mr. Mackay continued. "Increased seasonal oil demand, winter weather delays and lower global oil prices, which is encouraging stockpiling of crude oil and resulting in lower bunker fuel costs, are some of the key factors that are driving spot tanker rates higher."

The vessel acquisitions have been approved by the Board of Directors of both Teekay Tankers and the sellers and remain subject to customary closing conditions.

About Teekay Tankers Ltd.

Teekay Tankers directly owns a fleet of 32 double-hull vessels, including 12 Aframax tankers, 10 Suezmax tankers, seven Long Range 2 (LR2) product tankers, three Medium-Range (MR) product tankers, including five vessels to be acquired in the first quarter of 2015, and has contracted ten time charter-in conventional tankers. Teekay Tankers' vessels are employed through a mix of short- or medium-term fixed-rate time charter contracts and spot tanker market trading, and its vessels are commercially and technically managed by a joint venture company in which Teekay Tankers and Teekay Corporation (NYSE:TK) each own a 50 percent interest. The Company also owns a Very Large Crude Carrier (VLCC) through a 50 percent-owned joint venture. In addition, Teekay Tankers owns a minority interest in Tanker Investments Ltd. (OSLO:TIL), which currently owns a fleet of 20 modern tankers, including six vessels to be acquired in the first half of 2015. Teekay Tankers was formed in December 2007 by Teekay Corporation as part of its strategy to expand its conventional oil tanker business.

Teekay Tankers' common stock trades on the New York Stock Exchange under the symbol "TNK."

FORWARD LOOKING STATEMENTS

This release contains forward-looking statements (as defined in Section 21E of the Securities Exchange Act of 1934, as amended) which reflect management's current views with respect to certain future events and performance, including statements regarding: the pending acquisition of four coated Aframaxes and one uncoated Aframax, including completion of the acquisitions and delivery dates for the vessels; spot tanker rates for the fourth quarter of 2014 compared to the previous quarter; and future tanker market fundamentals. The following factors are among those that could cause actual results to differ materially from the forward-looking statements, which involve risks and uncertainties, and that should be considered in evaluating any such statement: changes in the production of or demand for oil or refined products; changes in trading patterns significantly affecting overall vessel tonnage requirements; greater or less than anticipated levels of tanker newbuilding orders and deliveries and greater or less than anticipated rates of tanker scrapping; changes in global oil prices; changes in applicable industry laws and regulations and the timing of implementation of new laws and regulations; changes in interest rates and the financial markets; satisfaction of closing conditions to the vessel acquisitions; factors leading to delays in or failure to take delivery of the four coated Aframaxes and one uncoated Aframax the Company has agreed to acquire; and other factors discussed in Teekay Tankers' filings from time to time with the United States Securities and Exchange Commission, including its Report on Form 20-F for the fiscal year ended December 31, 2013. The Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company's expectations with respect thereto or any change in events, conditions or circumstances on which any such statement is based.

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