On April 8, 2013, Teekay Tankers Ltd. entered into an agreement with STX Offshore & Shipbuilding Co., Ltd., (STX) of South Korea for the construction of four, fuel-efficient 113,000 dead-weight tonne (dwt) Long Range 2 (LR2) product tanker newbuildings for a fully built-up cost of approximately $47 million each.
Upon delivery, it is expected that the vessels will operate in Teekay Corporation’s Taurus Tankers LR2 Pool (the Taurus LR2 Pool), which is one of the world’s largest LR2 pools with approximately 20 LR2 product tankers.
The agreement with STX includes a favorable installment payment schedule, with the majority of the purchase price due upon delivery. The Company intends to finance the installment payments with its existing liquidity, which was approximately $327 million as of December 31, 2012. The Company expects to secure long-term debt financing for the four vessels prior to their scheduled deliveries in late-2015 and early-2016.
[mappress] Shipbuilding Tribune Staff, April 11, 2013; Video: youtube/TeekayCorp