* To sell 7 mln Class A common shares in public offering
* To use the proceeds to buy 3 tankers
* Shares down 7 percent after market
April 5 Teekay Tankers Ltd (TNK.N) said it
plans to publicly offer 7 million class A common shares to
finance the purchase of three tankers, dragging its shares down
7 percent in after-market trade.
The company plans to use proceeds from the public offering,
together with $32 million from issuing unregistered common
stock to its parent Teekay Corp (TK.N) and borrowings from its
credit facility to buy the tankers for $168.7 million.
The tanker shipping company said its net fleet capacity
will increase by about 23 percent to about 1.8 million
deadweight tons, after the planned purchase of three tankers.
The company said it will grant underwriters the option to
buy up to an additional 1.05 million shares to cover over
Shares of the company fell 88 cents to $12.11 in trading
after the bell Monday.
(Reporting by Aftab Ahmed in Bangalore; Editing by Ratul Ray