* 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 allotments.
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 Chaudhuri)