After months of speculation, Teekay Tankers is the winning bidder for Principal Maritime’s Suezmax fleet, and will pay around US$662 million for 12 Suezmaxes built between 2005-2013, according to IHS Maritime 360.
Teekay Tankers will be financing the purchase with a $400 million debt facility plus $122 million from a cash injection via its existing liquidity.
Kevin Mackay, CEO of Teekay Tankers, said: “The acquisition is strategically important. Teekay Tankers will become one of the largest owners of modern Suezmax tankers at the right point in the tanker market cycle, when positive market fundamentals support continued strength in spot rates.”
Noah Parquette, Analyst for JP Morgan, said: “There's a lot to like about this transaction, as the purchase price is attractive, an en-bloc purchase of a fleet like this is rare, and the deal is immediately accretive.”
Fact File: Principal Maritime was founded in 2010 by private-equity group Apollo and is led by Art Regan. Apollo ended with a private sale after originally seeking to monetise tanker investments.
