Ownership of the new company, Exmar LPG BVBA, will be split 50/50 between the Canadian and Belgian shipowners.
It will initially have a fleet of around twenty-three ships of which Exmar will contribute sixteen-owned vessels and the rest will be chartered-in tonnage.
The Exmar LPG BVBA fleet will include fifteen owned midsize gas carriers (MGC), of which four are under construction at Hyundai Mipo Dockyard and one owned VLGC.
It will also time-charter in three MGCs and two VLGCs, and bareboat-charter in one MGC and one VLGC.
Teekay LNG will contribute about $140m of equity and assume pro rata debt and lease obligations secured by certain vessels to be owned by the new entity.
Prior to this transaction, Exmar LPG BVBA will acquire from Wah Kwong the remaining 50% interest in two MGCs, the 35,440-cbm Brugge Venture (built 1997) and the 39,000-cbm Touraine (built 1996), which it does not already own.
The joint venture also said to have received a commitment from certain commercial lenders to refinance the fleet in early-2013.
Exmar, which will continue to commercially and technically manage and operate the vessels, says the intention is to renew and grow the fleet and that discussions are already underway with various yards to secure additional orders.
“New gas export projects scheduled to come on-line, combined with a relatively modest LPG carrier orderbook, are expected to result in strong demand for the current global LPG carrier fleet,” said Teekay chief executive Peter Evensen.
“In addition to providing potential upside from the attractive fundamentals in the LPG shipping market, this accretive transaction further diversifies Teekay LNG’s fixed-rate contract portfolio while leveraging Exmar’s deep expertise as a leading owner and operator of medium-sized gas carriers.”
The proposed transaction, which is expected to close in late-2012 or early-2013, has been approved by the Teekay LNG and Exmar boards of directors, and remains subject to customary closing conditions, including the completion of due diligence, vessel inspections and documentation. /c/