International Seaways is poised to swoop on six MR tankers owned by US private equity player Wayzata Investment Partners in a deal valued at $238m, tanker market sources said on Friday.
The Lois Zabrocky-led shipowner is to take in the 51,700-dwt series in a deal that had market sources on both sides of the Atlantic buzzing.
New York-listed Seaways is set to take in the 2014-built Crystal Bay and Excelsior Bay, as well as the 2015-built Lafayette Bay, Saint Albans Bay, Jennings Bay and Harrison Bay, sources said.
Distressed-asset specialist Wayzata acquired the sextet in two separate resale transactions in 2013 and 2014 as newbuildings under construction at South Korean yard SPP Shipbuilding, according to VesselsValue. Four of the vessels sold for $32.5m each, while no price was reported for the remaining two.
VesselsValue estimates the tankers are currently worth between $37.5m and $39.4m.
Seaways has been approached for comment. A person answering the phone at the number listed on Wayzata’s website declined to comment on Friday.
Wayzata is a diversified tanker owner with a market capitalisation close to $2.6bn. It has a stable of 35 MRs that make up the largest part of its 77-strong fleet by vessel count.
However, all but three of the current MRs are older than those about to be purchased from Wayzata.
Seaways also owns 13 VLCCs, 13 suezmaxes, five aframax LR2s and 11 LR1s, including four newbuildings.
Minnesota-based Wayzata was formed in 2004 after a management buyout of ex-Cargill subsidiary CFSC Wayland Advisers and was one of several private equity funds attracted to shipping at the time.
It was reported in 2017 by industry publication Buyouts that the Patrick Halloran-led firm was likely to be winding down existing investments overall and might not choose to raise a new fund.
The firm had about $2.7bn in assets under management at that time, Buyouts reported.
Seaways had only four MRs in its fleet when in March 2021 it confirmed it was acquiring Connecticut-based Diamond S Shipping in a $2.2bn all-stock merger that has proved to be a winning transaction for the Manhattan owner.
Diamond brought to the transaction 50 MRs, the largest bloc acquired when Diamond — backed by billionaire US investor Wilbur Ross — acquired the 30-strong product tanker fleet of South Korea’s Cido Shipping in 2011.
Not all of the Diamond vessels made it into the Seaways fleet as there were selective sales before the Diamond takeover was able to close in July 2021.
