Teekay Corporation (Teekay) announced that its wholly owned subsidiary, Teekay Tankers Ltd., has filed a registration statement with the U.S. Securities and
Exchange Commission for an initial public offering of its Class A Common Stock. The offering currently is
scheduled to include 10,000,000 shares of Class A Common Stock (11,500,000 shares if the underwriters exercise
their over-allotment option in full), representing a 40% ownership interest. The Class A Common Stock has been
approved for listing on The New York Stock Exchange
, subject to official notice of issuance, under the symbol
Teekay Tankers Ltd., a recently formed Marshall Islands corporation, will acquire from Teekay upon the closing of
the public offering a fleet of nine double-hull Aframax-class oil tankers
, which an affiliate of Teekay will manage
under a mix of spot-market trading and short- or medium-term fixed-rate time-charter contracts. In addition, Teekay
will offer to Teekay Tankers within 18 months of the public offering the opportunity to purchase up to four
Suezmax-class oil tankers. Teekay Tankers intends to distribute on a quarterly basis all of its cash available for
distribution, subject to any reserves established by its board of directors.
Citi and Morgan Stanley will act as joint book-running managers and as representatives of the underwriters, who
will include Merrill Lynch & Co., Wachovia Securities, Deutsche Bank Securities, JPMorgan, Dahlman Rose &
Company, Scotia Capital, and Johnson Rice & Company L.L.C.