Teekay Tankers, TIL Close Merger Deal
Tanker owners and operators Teekay Tankers and Tanker Investments Ltd. (TIL) finalized their merger agreement on November 27.
Upon the closing of the merger, each outstanding share of TIL common stock, other than shares held in the treasury of TIL or owned by Teekay Tankers or any of its subsidiaries, was exchanged for the right to receive 3.30 shares of Teekay Tankers Class A Common Stock, and TIL became a wholly owned subsidiary of Teekay Tankers.
Tanker Investments’ shareholders will now own some 30% of the combined entity.
As part of the transaction, Teekay Tankers will assume some USD 350 million of TIL’s 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 parties entered the merger deal in June 2017, with an aim to create one of the world’s largest mid-size tanker companies, with a 62-vessel fleet and combined total assets of USD 2.4 billion.