Target Information
Teekay Tankers Ltd. (the Company) has entered into a 50/50 joint venture with Wah Kwong Shipping of Hong Kong to invest in a Very Large Crude Carrier (VLCC) newbuilding scheduled for delivery in April 2013. This VLCC will be sourced from the Shanghai Waigaoqiao shipyard, with the vessel expected to be time-chartered to a major Chinese shipping company for a five-year term. The time-charter agreement features a fixed floor rate along with a profit-sharing component.
The total contract value of the VLCC is $98 million, with the joint venture planning to finance approximately $70 million through commercial banking institutions. The remaining $28 million will be provided by the joint venture partners, and Teekay Tankers anticipates utilizing its revolving credit facility to cover its share of the equity requirement, estimated at $14 million.
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Industry Overview in China
China has become a dominant player in the global shipping and oil transportation sectors, driven by the country's rapid industrial growth and rising energy demands. The shipping industry in China has seen significant advancem
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Teekay Tankers Ltd. and Wah Kwong Shipping
invested in
Very Large Crude Carrier (VLCC) newbuilding
in 2010
in a Joint Venture deal
Disclosed details
Transaction Size: $98M
Equity Value: $14M