Since September 30, 2017, Teekay Tankers has not repurchased any of its shares of Class A common stock pursuant to the program.
Teekay Tankers Acquisition of Tanker Investments Limited
In May 2017, Teekay Tankers entered into a merger agreement to acquire all of the remaining issued and outstanding shares of Tanker Investments
Limited (or
TIL
) in a share-for-share merger at an exchange ratio of 3.3 shares of Teekay Tankers Class A common stock for each share of TIL common stock. TIL owns a modern fleet of ten Suezmax tankers, six Aframax
tankers and two LR2 product tankers with an average age of 7.3 years. On November 17, 2017, the TIL shareholders approved the merger and the Teekay Tankers shareholders approved an increase in the authorized number of Teekay
Tankers Class A common shares, to permit the issuance of Class A common shares as merger consideration. Upon the closing of the merger on November 27, 2017, TIL became a wholly-owned subsidiary of Teekay Tankers.
In order to refinance the indebtedness of TIL assumed in connection with the merger, on December 18, 2017, Teekay Tankers entered into a
revolving credit facility providing for aggregate borrowings of up to $270 million, which matures on December 21, 2022. Interest on the loans under the revolving credit facility are based on LIBOR plus a margin of 2.75%. The revolving credit
facility is collateralized by first-priority mortgages granted on 14 of Teekay Tankers vessels.
LNG Carrier Newbuilding
Deliveries
In October and November 2017, Teekay LNG took delivery of two MEGI LNG carrier newbuildings, the
Macoma
and
Murex
, chartered to Royal Dutch Shell (
Shell
), which immediately commenced their six and seven-year charter contracts, plus extension options, respectively.
In October 2017, Teekay LNGs 30%-owned joint venture with China LNG Shipping (Holdings) Limited and CETS (an affiliate of China National
Offshore Oil Corporation) took delivery of an LNG carrier newbuilding, the
Pan Asia
, which immediately commenced its 20-year charter contract with Shell.
Yamal Newbuilding Delivery and Financing Secured
In December 2017, Teekay LNG completed an $816 million long-term debt facility (on a 50% basis) to finance all six of Teekay LNGs
50%-owned ARC7 LNG carrier newbuildings, which are scheduled to deliver through early-2020. These newbuildings will service the Yamal LNG project under charter contracts with firm charter periods out to 2045 plus option periods. In January 2018,
Teekay LNG took delivery of its first 50%-owned ARC7 LNG carrier newbuilding, which immediately commenced its charter contract.
Commencement of Operations of the Pioneiro de Libra FPSO
In November 2017, Teekay Offshores 50%-owned
Pioneiro de Libra
FPSO, which was converted from a shuttle tanker at
Sembcorps Jurong shipyard in Singapore, commenced its 12-year charter contract with a consortium of international oil companies, including Petrobras, Total S.A., Shell, China National Petroleum Corporation and China National Offshore
Oil Corporation, on the giant Libra block in the Santos Basin offshore Brazil.
Commencement of Operations of
the Randgrid FSO
In October 2017, Teekay Offshores
Randgrid
FSO, which was converted from a shuttle
tanker at Sembcorps Sembawang shipyard in Singapore, commenced its three-year time-charter contract with Statoil ASA (
Statoil
), including 12 additional one-year extension options, on the Gina Krog oil and gas field in the
Norwegian sector of the North Sea.