Teekay Tankers Ltd. · NYSE:TNK
Teekay Tankers — Merger or Acquisition (June 2017)
13 slides from Teekay Tankers's merger presentation, Jun 1, 2017
Slide 1: Proposed Merger of TNK and TIL
PROPOSED MERGER OF TNK AND TIL June 1, 2017
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains forward-looking statements (as defined in Section 21E of the Securities Exchange Act of 1934, as amended) which reflect management’s current views with respect to certain future events and performance, including statements regarding: the timing a
Slide 3: Strategic Transactions Creates Largest Publicly-Listed Mid-Sized Tanker Company
Strategic Transactions Creates Largest Publicly-Listed Mid-Sized Tanker Company • Agreed to a merger with Tanker Investments Ltd. (TIL), adding 18 modern mid-sized vessels to the fleet Completes Evolution into Full Service Conventional Tanker Platform • Acquired Teekay Corporation’s remaining 50% of
Slide 4: Merger Highlights
Merger Highlights Accretive to earnings per share Increases asset base to $2.4 billion1 Strengthens balance sheet and liquidity position Reduces average fleet age by 1 year Reduces cash breakeven2 by ~$1,000 per day Seamless integration of two homogenous fleets 4 (1) Pro-forma total assets at March
Slide 5: Establishing the World's Leading Tanker Brand
Establishing the World’s Leading Tanker Brand Generating significant shareholder value Goals Re-establish operational excellence as hallmark of Teekay brand Broaden service offering generating new revenue streams Control commercial and technical operations Consolidate mid-sized tanker segment Rebuil
Slide 6: Positive Long-Term Supply Outlook
Positive Long-Term Supply Outlook Small mid-size orderbook from 2018 onwards and an aging fleet Mid-Size Tanker Fleet and Orderbook Profile 160 Suezmax Orderbook Aframax / LR2 Orderbook 350 Suezmax Fleet Aframax / LR2 Fleet 140 300 59 120 250 15 Years Scrapping 26 100 16 Years Vessels Candidates Ves
Slide 7: Long-Term Growth in Tonne-Mile Demand
Long-Term Growth in Tonne-Mile Demand Increasing oil production in traditional Aframax / Suezmax load regions Europe Asia 4.2 North America 0.0 -0.6 2.0 Supply Demand -0.3 -0.4 Supply Demand Supply Demand Africa & Middle East 2.0 OPEC policy dependent Supply Demand Latin America 0.7 0.5 Supply Deman
Slide 8: Fleet Utilization Forecast
Fleet Utilization Forecast Down-cycle through 2017; rebound expected from 2018 8% Tanker Demand Growth Tanker Supply Growth Fleet Utilization 92% 7% 90% 6% th 88% Grow 5% 86% 4% Utilization Demand 3% 84% / Fleet 2% % Supply 82% % 1% 80% 0% 78% -1% -2% 76% 2008 2009 2010 2011 2012 2013 2014 2015 2016
Slide 9: Appendix
APPENDIX 9
Slide 10: TIL Fleet
TIL Fleet Time Charter Out Vessel Class DWT Year Built Expiry Rates ($ per day) Hovden Spirit LR2 105,276 2012 Trysil Spirit LR2 105,276 2012 Peak Spirit Aframax 104,621 2011 Whistler Spirit Aframax 109,000 2010 Blackcomb Spirit Aframax 109,000 2010 Tarbet Spirit Aframax 107,529 2009 17,000 Feb 2018
Slide 11: All Stock Transaction Details
All Stock Transaction Details Agreed Exchange Ratio (TNK Class A:TIL) 3.30x TNK Shares Issued on Merger (000’s)88,866 Net Debt Assumed ($000’s) 309,000 TNK Shares TIL Shares Issued on (000’s) Merger (000’s) Teekay Tankers 3,435 Teekay Corporation 2,500 8,250 Tanker Investments 3rd Party Investors24,
Slide 12: Additional Information about the Merger and Where to Find It
Additional Information about the Merger and Where to Find It This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval. This communication may be deemed to be solicitation material in respect of the propose
Slide 13: Bringing Energy to
BRINGING ENERGY TO