Bermuda-based Teekay Tankers Ltd. has acquired two double-hull Suezmax-class oil tankers from Teekay Corp. for a total cost of $186.9 million.

Teekay expects to complete the acquisition of the 2002-built Ganges Spirit and the 2003-built Narmada Spirit in early April 2008.

The company plans to finance the acquisition by assuming $114 million of existing debt related to the vessels and utilising Teekay Tankers' undrawn credit facility for the remainder of the purchase price.

The Narmada Spirit is currently employed in spot market trading as part of the Teekay-owned Gemini Pool. The Ganges Spirit will be employed on its pre-existing time-charter contract that expires in May 2012 at a base rate of $30,500 per day and also operates as part of the Gemini Pool. The terms of this contract also will entitle Teekay Tankers to the first $3,000 per day of the vessel's earnings in the pool above the base rate and fifty percent of the earnings above $33,500 per day.

"We are very pleased that Teekay Tankers has made its first acquisition only three months after its initial public offering," Bjorn Moller, Teekay Tankers CEO said. "By expanding into Suezmax tankers utilizing our low-cost debt financing, we will take the first step toward our goal of increasing dividends per share by executing on our business strategy of expanding our fleet through accretive acquisitions.

"The mix of spot trading and a time-charter contract associated with these vessels allows Teekay Tankers' investors to participate in the upside of the spot tanker market, with spot Suezmax rates currently between $60,000 and $120,000 per day depending upon the trade route, while reducing downside risk," Mr. Moller added.

"Teekay Tankers intends to continue to expand its fleet through accretive acquisitions with the goal of maximising dividends per share. In future acquisitions, we will continue to manage our capital structure and chartering mix in an effort to provide our investors with the optimal risk, return balance."