Tanker Investments : Reports Fourth Quarter and Annual 2016 Results

Tanker Investments Ltd. Fourth Floor, Belvedere Building 69 Pitts Bay Road‌‌‌

Hamilton, HM 08 Bermuda Tel: [phone]

TANKER INVESTMENTS LTD. REPORTS FOURTH QUARTER AND ANNUAL 2016 RESULTS

Hamilton, Bermuda, February 23, 2017 - Tanker Investments Ltd. (Tanker Investments, TIL or the Company) today reported its financial results for the quarter ended December 31, 2016.

Highlights:

• Reported net income of USD 2.7 million, or USD 0.09 per share, for the fourth quarter of 2016.

• Generated cash flow from vessel operations (CFVO1) of USD 16.6 million in the fourth quarter of 2016, compared to USD 10.2 million in the previous quarter.

• Secured a 1-year time-charter of the Aframax tanker, the Tarbet Spirit, at a gross rate of USD 17,000 per day which commenced in February 2017.

• As of December 31, 2016, the Company had total liquidity of approximately USD 110 million.

"Tanker Investments was well-positioned to take advantage of the seasonally strong tanker market in the fourth quarter of 2016, resulting in over USD 16.6 million of cash flow from vessel operations, and USD

0.09 per share of net income," commented William Hung, Tanker Investments Limited's CEO. Mr. Hung continued, "Also during the fourth quarter, we were able to lock-away another vessel on a 1-year time- charter at a rate of USD 17,000 per day, and we intend to look for additional time-charter opportunities."

"Looking ahead to 2017, we expect tanker rates could be challenged driven by OPEC oil production cutbacks and increased shipyard deliveries of newbuildings, partially offset by new, longer-haul routes for mid-size tankers transporting Atlantic basin volumes to Asian buyers," commented Mr. Hung. "With a strong financial position, including liquidity of approximately USD 110 million, and a young, modern fleet we believe Tanker Investments is one of the best positioned tanker companies for investors to benefit from the tanker market recovery we expect to occur in 2018."

1 Cash flow from vessel operations is a non-GAAP financial measure. Please refer to "Definitions and Non-GAAP Financial Measures" and the Appendices to this release for a definition of the term and reconciliation of this non-GAAP financial measure as used in this release to the most directly comparable financial measure under United States generally accepted accounting principles (or GAAP).

Selected Financial Information

All figures in USD millions (except per share, per day and unless otherwise specified)
Balance Sheet Summary	As at December 31, 2016	As at September 30, 2016	As at December 31, 2015
Cash & Cash Equivalents	$35.1	$41.7	$43.4
Total Assets	$803.4	$816.1	$1,027.4
Total Liabilities	$378.5	$393.9	$602.0
Total Liquidity	$109.9	$113.4	$68.4
Net Debt to Capitalization(1)	43.6%	44.3%	55.8%
Three Months Ended
Income Statement Summary	December 31, 2016	September 30, 2016	December 31, 2015
Total Revenues	$32.5	$26.6	$70.2
Net Income (loss)	$2.7	$(2.9)	$28.5
Net Income (loss) per share	$0.09	$(0.09)	$0.79
Cash Flow from Vessel Operations (CFVO)(1)	$16.6	$10.2	$45.9
Three Months Ended
Spot Fleet - TCE rate(2)	December 31, 2016	September 30, 2016	December 31, 2015
Suezmax Revenue Days	916	918	905
Suezmax TCE rate per day	$23,109	$18,550	$40,861
Aframax Revenue Days	461	543	552
Aframax TCE rate per day	$16,309	$14,682	$32,008
Coated Aframax Revenue Days	184	179	184
Coated Aframax TCE rate per day	$13,354	$15,042	$27,102
VLCC Revenue Days	-	-	184
VLCC TCE rate per day	-	-	$51,719
Three Months Ended
Time Charter-Out Fleet - TCE rate(2)	December 31, 2016	September 30, 2016	December 31, 2015
Aframax Revenue Days	87	-	-
Aframax TCE rate per day	$17,203	-	-

All figures in USD millions (except per share, per day and unless otherwise specified)
Year Ended
Income Statement Summary	December 31, 2016	December 31, 2015
Total Revenues	$152.6	$210.8
Net Income	$31.1	$75.8
Net Income per share	$1.01	$2.07
Cash Flow from Vessel Operations (CFVO)(1)	$86.6	$133.1
Year Ended
Spot Fleet - TCE rate(2)	December 31, 2016	December 31, 2015
Suezmax Revenue Days	3,607	2,028
Suezmax TCE rate per day	$27,122	$38,825
Aframax Revenue Days	2,082	2,163
Aframax TCE rate per day	$20,829	$32,189
Coated Aframax Revenue Days	727	730
Coated Aframax TCE rate per day	$18,543	$28,473
VLCC Revenue Days	-	678
VLCC TCE rate per day	-	$46,886
Year Ended
Time Charter-Out Fleet - TCE rate(2)	December 31, 2016	December 31, 2015
Aframax Revenue Days	87	-
Aframax TCE rate per day	$17,203	-

1. These are non-GAAP financial measures. Please refer to "Definitions and Non-GAAP Financial Measures" and the Appendices to this release for a definition of the terms and reconciliation of these non-GAAP financial measures as used in this release to the most directly comparable financial measures under United States generally accepted accounting principles (or GAAP).

2. Time-charter equivalent (TCE) rates represents the operating performance of the Company's time-charter vessels and spot vessels trading in pools measured in net voyage revenue per revenue day, before related-party pool management fees, related-party commissions and off-hire bunker expenses.

   Financial Review of the Three Months and Year Ended December 2016

   During the fourth quarter of 2016, total revenues decreased to USD 32.5 million from USD 70.2 million in the fourth quarter of 2015. This decrease is primarily due to lower spot tanker rates earned across the fleet in the fourth quarter of 2016 and the effects of the sale of the Hemsedal Spirit and Voss Spirit in the first quarter of 2016. During the year ended December 31, 2016, total revenues decreased to USD 152.6 million from USD 210.8 million for the year ended December 31, 2015, due primarily to lower spot tanker rates earned across the fleet in 2016. The decrease is partially offset by the larger average fleet size in operation and fewer off-hire days from vessel dry-docking in 2016.

   CFVO was USD 16.6 million during the fourth quarter of 2016, which decreased from USD 45.9 million in the fourth quarter of 2015 primarily due to lower revenue earned on the Company's fleet, as described above. CFVO was USD 86.6 million during the year ended December 31, 2016 which decreased from USD 133.1 million for the same period in 2015.

   Total interest expense was USD 4.4 million in the fourth quarter of 2016, compared to USD 6.1 million in the fourth quarter of 2015. This decrease is mainly due to lower average debt balances in the fourth quarter of 2016 compared to the same period in 2015. Total interest expense was USD 19.1 million for the year ended December 31, 2016, compared to USD 22.3 million for the same period in 2015.

   Tanker Investments reported net income of USD 2.7 million, or USD 0.09 per share, for the fourth quarter of 2016 compared to net income of USD 28.5 million, or USD 0.79 per share, in the fourth quarter of 2015. Net income was USD 31.1 million, or USD 1.01 per share, for the year ended December 31, 2016 compared to net income of USD 75.8 million, or USD 2.07 per share, for the corresponding period in 2015.

   Tanker Market Outlook

   Tanker rates in 2016 softened from the highs seen in 2015, yet remained in-line with the ten-year average as a result of ongoing positive demand fundamentals. Global oil demand remained strong in 2016 with growth of 1.5 million barrels per day (mb/d), which was 0.4 mb/d higher than the ten-year average. Global oil supply was also strong, with record high OPEC production for 2016 of 32.6 mb/d. However, unexpected supply outages in Nigeria put pressure on mid-sized tanker demand in mid-2016. Oil prices remained in the mid-$40 per barrel range for most of 2016 before increasing in December 2016 as OPEC firmed plans for production cuts as a means to rebalance oil markets. While ongoing low prices throughout the year provided some support for tonne-mile demand through strategic and commercial stockpiling programs, record high onshore stock levels towards the second half of 2016 resulted in lower import requirements as refiners struggled with stockpile levels. Tanker fleet growth also created some downside pressure to tanker rates towards the second half of 2016 as crude tanker fleet growth reached 6% and scrapping dipped to the lowest level since 1995.

   Crude tanker rates strengthened in the fourth quarter of 2016 due to expected seasonal factors, and reached a seasonal high in December 2016, as global refinery throughput, increased exports out of Nigeria, Libya, and Baltic / Black Sea ports, and winter weather delays provided support for tanker rates. Mid-sized crude tanker rates, in particular, found support from weather delays through the Turkish Straits along with increasing exports out of the U.S. Gulf. Record high Middle East OPEC crude production, averaging 25.6 mb/d in the fourth quarter of 2016, also provided a boost for crude tanker tonne-mile demand.

   Strength in spot tanker rates continued into the first quarter of 2017 and resulted in significantly higher crude spot tanker rates for the first quarter of 2017 to date compared to the fourth quarter of 2016; however, crude spot tanker rates have recently started to soften due to a number of factors, including:

   • Heavy refinery maintenance programs in the U.S. Gulf through the first quarter of 2017, and a heavy spring maintenance period expected in Asia;

   • Fewer weather-related delays in key transit areas, including the Turkish Straits;

   • Firming oil prices which have increased bunker fuel costs for shipowners and prompted crude inventory drawdowns; and

   • Higher tanker fleet growth: six Suezmax tankers and nine Aframax tankers have delivered in 2017 to-date (compared to one and nine in 2016, respectively)

Looking ahead, the Company anticipates 2017 to present some headwinds to the crude tanker spot tanker market. Fleet growth is forecast to be approximately 4.5%, which is slightly lower than 2016 but in-line with the ten-year average. However, most fleet growth in 2017 will come from the mid-sized segments, with mid-size fleet growth expected to be approximately 5%. The outlook for 2018 is more positive given a lack of ordering and the expectation for increased scrapping due to an aging fleet and changes to the regulatory landscape.

Global oil demand is forecast to grow by 1.4 mb/d in 2017 (average of IEA, EIA, and OPEC forecasts), which is similar to 2016 and above the ten-year average growth rate of 1.1 mb/d. On the supply side, OPEC production cuts of approximately 1.2 mb/d, with the majority of cuts (approximately 0.8 mb/d) coming from Middle East OPEC producers, will be negative for overall crude volumes available for transport. While OPEC production cuts may continue through the year, non-OPEC production increases of approximately

1. mb/d are expected as firming oil prices encourage more drilling, particularly in the U.S. The result could benefit the mid-sized tanker segments from increased tonne-mile demand as oil supply in the Atlantic basin continues to grow. In addition, the Brent - Dubai spread has narrowed considerably as a result of OPEC cuts, and many crude buyers are sourcing Brent-benchmarked crudes as they become more economically attractive. These price / supply factors could offset some of the headwinds that face the crude tanker market in 2017 as they have the potential to introduce volatility into regional tanker demand, which is positive for spot tanker rates.

   In summary, the Company anticipates that 2017 will present some headwinds to crude tanker rates due to cuts to OPEC production, rising oil prices, and fleet growth. However, the Company believes that this dip in the current market cycle will be relatively short and shallow. In addition, lower fleet growth, strong oil demand growth, particularly in Asia, and a potential increase in long-haul movements from the Atlantic basin to the Pacific basin is expected to provide support towards the next market upturn.

   Vessel Name

   Type

   Built

   Delivery Date

   Tanker Investments' Fleet as of December 31, 2016

   Tianlong Spirit	Suezmax	2009	February 28, 2014
   Jiaolong Spirit	Suezmax	2009	February 28, 2014
   Shenlong Spirit	Suezmax	2009	February 28, 2014
   Dilong Spirit	Suezmax	2009	February 28, 2014
   Tarbet Spirit	Aframax	2009	March 10, 2014
   Emerald Spirit	Aframax	2009	April 10, 2014
   Whistler Spirit	Aframax	2010	May 2, 2014
   Hovden Spirit	Coated Aframax	2012	June 2, 2014
   Trysil Spirit	Coated Aframax	2012	June 19, 2014
   Garibaldi Spirit	Aframax	2009	June 20, 2014
   Blackcomb Spirit	Aframax	2010	June 30, 2014
   Peak Spirit	Aframax	2011	October 24, 2014
   Baker Spirit	Suezmax	2009	July 16, 2015
   Cascade Spirit	Suezmax	2009	August 5, 2015
   Copper Spirit	Suezmax	2010	August 6, 2015
   Aspen Spirit	Suezmax	2009	August 6, 2015
   Tahoe Spirit	Suezmax	2010	August 7, 2015
   Vail Spirit Liquidity	Suezmax	2009	August 14, 2015

   As of December 31, 2016, Tanker Investments had total liquidity of approximately USD 109.9 million, including USD 35.1 million of cash and USD 74.8 million of undrawn revolving credit facilities, compared to total liquidity of USD 68.4 million as at December 31, 2015.

   Conference Call

   Tanker Investments plans to host a conference call on February 23, 2017 at 10 a.m. (ET) / 4 p.m. (CET) to discuss the results for the fourth quarter and fiscal year 2016. All shareholders and interested parties are invited to listen to the live conference call by choosing from the following options:

   • By dialing 1-844-254-9270 or 1-647-794-1827, if outside of North America, and quoting conference ID code 8138970.

   • By accessing the webcast, which will be available on Tanker Investments' website www.tankerinvestments.com (the archive will remain on the website for a period of 30 days).

A supporting Fourh Quarter and Fiscal Year 2016 Earnings Presentation will also be available at www.tankerinvestments.com in advance of the conference call start time.

In additional to the webcast archive, the conference call will be recorded and available until Thursday, March 9, 2017. This recording can be accessed following the live call by dialing 1-888-203-1112 or 1-647-436-0148, if outside North America, and entering access code 8138970.

About Tanker Investments Ltd.

Tanker Investments Ltd. is a specialized investment company focused on the tanker market. Tanker Investments Ltd. was formed in January 2014 to opportunistically operate and sell modern secondhand tankers to benefit from cyclical fluctuations in the tanker market. Tanker Investments' fleet consists of 18 vessels. Consistent with its general business strategy, TIL intends to monitor and explore consolidation opportunities that would benefit its business, market position and shareholders.

Tanker Investments' common stock trades on the Oslo Stock Exchange under the symbol "TIL".

For Investor Relations enquiries contact:

Scott Gayton Tel: [phone]

Website: www.tankerinvestments.com

Definitions and Non-GAAP Financial Measures

This release includes financial measures that are non-GAAP financial measures as defined under the rules of the European Securities and Market Authority. These non-GAAP financial measures, Cash Flow from Vessel Operations and Net Debt to Capitalization, are intended to provide additional information and should not be considered as a substitute for the measures of performance prepared in accordance with GAAP. In addition, these measures do not have a standardized meaning, and may not be comparable to similar measures presented by other companies. The Company believes that certain investors use this information to evaluate the Company's financial performance.

Cash Flow from Vessel Operations (CFVO)

Cash flow from vessel operation, a non-GAAP financial measure, is used by certain investors to measure the financial performance of shipping companies. Cash flow from vessel operations represents net (loss) income plus depreciation and amortization expense, interest expense and other expenses, less gain on sale of vessels and interest income. Please refer to Appendix A of this release for the reconciliation of this non-GAAP measure as used in this release to the most directly comparable GAAP financial measure.

Net Debt to Capitalization

Net debt to capitalization, a non-GAAP financial measure, is a ratio of the Company's total debt (less cash) to its total capital and it is used to assess the Company's degree of leverage. Please refer to Appendix B of this release for the reconciliation of this non-GAAP measure as used in this release to the most directly comparable GAAP financial measure.

TANKER INVESTMENTS LTD. AND SUBSIDIARIES UNAUDITED CONSOLIDATED STATEMENTS OF INCOME (in thousands of U.S. dollars, except share and per share amounts)

Ended December 31,	Ended December 31,	December 31,	December 31,
2016 $	2015 $	2016 $	2015 $
Net pool revenues from affiliates (note 6b)	30,213	60,365	149,124	181,307
Time charter revenues	1,516	-	1,516	-
Voyage revenues	746	9,806	1,989	29,527
Total revenues	32,475	70,171	152,629	210,834
Voyage expenses	(165)	(2,977)	(1,480)	(12,346)
Vessel operating expenses (notes 6b and 6c)	(14,038)	(19,425)	(57,593)	(59,126)
Depreciation and amortization	(8,696)	(10,293)	(35,050)	(32,893)
General and administrative expenses (note 6b)	(1,673)	(1,888)	(6,938)	(6,285)
Gain on sale of vessels (notes 6b and 8)	-	-	1,228	-
Income from operations	7,903	35,588	52,796	100,184
Interest expense (notes 2 and 6a)	(4,378)	(6,090)	(19,124)	(22,308)
Interest income	33	56	148	149
Other expenses (note 3)	(878)	(1,095)	(2,690)	(2,227)
Net income	2,680	28,459	31,130	75,798
Per common share of Tanker Investments Ltd. (note 7)

Three Months Three Months Year Ended Year Ended

0.09 0.79 1.01 2.07

• Basic earnings attributable to common stockholders of Tanker Investments Ltd.

  0.09 0.78 1.00 2.03

• Diluted earnings attributable to common stockholders of Tanker Investments Ltd.

Weighted average number of common shares outstanding (note 7)
Basic	30,363,561	35,950,158	30,956,253	36,697,394
Diluted	30,363,561	36,555,044	31,037,119	37,261,602
Total number of common shares outstanding at end of period	30,363,561	33,682,881	30,363,561	33,682,881

Related party transactions (note 6)

The accompanying notes are an integral part of these unaudited consolidated financial statements.

TANKER INVESTMENTS LTD. AND SUBSIDIARIES UNAUDITED CONSOLIDATED BALANCE SHEETS (in thousands of U.S. dollars)	As at December 31, 2016 $	As at December 31, 2015 $
ASSETS Current Cash and cash equivalents	35,073	43,420
Pool receivables from affiliates, net (note 6b)	12,427	31,920
Accounts receivable	21	5,574
Due from affiliates	43	45
Prepaid expenses and other current assets (note 6c)	6,083	7,767
Vessels held for sale	-	150,286
Total current assets	53,647	239,012
Vessels and equipment At cost, less accumulated depreciation of $74.2 million (December 31, 2015 - $39.1 million)	729,226	763,098
Due from affiliates (note 6b)	20,536	25,268
Total assets	803,409	1,027,378
LIABILITIES AND SHAREHOLDERS' EQUITY Current Accounts payable	915	3,473
Accrued liabilities and other (note 6c)	7,152	12,194
Current portion of long-term debt (note 2)	38,061	143,685
Due to affiliates	2,041	2,136
Total current liabilities	48,169	161,488
Long-term debt (note 2)	324,940	437,750
Other long-term liabilities (note 3)	5,418	2,789
Total liabilities	378,527	602,027
Commitments and contingencies (notes 2 and 3)
Shareholders' Equity

Common stock ($0.001 par value; 400 million shares authorized; 30.4 million shares issued and

outstanding) (38.4 million shares issued and 33.7 million shares outstanding) (note 5) 3134

outstanding) (note 5)	1	1
Additional paid-in capital (note 5)	322,488	357,831
Retained earnings	102,362	67,485
Total shareholders' equity	424,882	425,351
Total liabilities and shareholders' equity	803,409	1,027,378
Subsequent events (note 9)
The accompanying notes are an integral part of these unaudited consolidated financial statements.

Preferred stock ($0.001 par value; 100 million shares authorized; 2 shares issued and

TANKER INVESTMENTS LTD. AND SUBSIDIARIES UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands of U.S. dollars)
Year Ended	Year Ended
December 31, 2016 $	December 31, 2015 $
Cash and cash equivalents provided by (used for)
OPERATING ACTIVITIES Net income	31,130	75,798
Non-cash items: Depreciation and amortization	35,050	32,893
Other	3,385	5,481
Change in non-cash working capital items related to operating activities	23,769	(21,443)
Expenditures for dry-docking	(819)	(6,573)
Net operating cash flow	92,515	86,156
FINANCING ACTIVITIES Proceeds from issuance of long-term debt, net of issuance costs (note 2)	-	347,131
Prepayments of long-term debt	(178,286)	(59,675)
Repayments of long-term debt	(41,753)	(38,652)
Repurchase of common stock (note 5)	(31,797)	(40,589)
Other financing activities	(181)	-
Net financing cash flow	(252,017)	208,215
INVESTING ACTIVITIES Proceeds on disposal of vessels	151,513	-
Expenditures for vessels and equipment	(358)	(320,543)
Net investing cash flow	151,155	(320,543)
Decrease in cash and cash equivalents	(8,347)	(26,172)
Cash and cash equivalents, beginning of the year	43,420	69,592
Cash and cash equivalents, end of the year	35,073	43,420
The accompanying notes are an integral part of these unaudited consolidated financial statements.

TANKER INVESTMENTS LTD. AND SUBSIDIARIES UNAUDITED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (in thousands of U.S. dollars, except share amounts)

Thousands of
Shares of	Shares of
Common	Preferred	Additional	Total
Stock	Common	Stock	Preferred	Paid-In	Retained	Shareholders'
Outstanding	Stock	Outstanding	Stock	Capital	Earnings	Equity
#	$	#	$	$	$	$
Balance as at December 31, 2015	33,683	34	2	1	357,831	67,485	425,351
Net income	-	-	-	-	-	31,130	31,130

198

Shares issued as compensation

Share buyback	(3,345)	(3)	-	-	(35,541)	3,747	(31,797)
Balance as at December 31, 2016	30,364	31	2	1	322,488	102,362	424,882

(note 5) 26 - - - - 198

The accompanying notes are an integral part of these unaudited consolidated financial statements.

TANKER INVESTMENTS LTD. AND SUBSIDIARIES NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (all tabular amounts stated in thousands of U.S. dollars, except share and per share amounts)

1. Basis of Presentation and Nature of Operations

   On January 10, 2014, Teekay Corporation (or Teekay) and Teekay Tankers Ltd. (or Teekay Tankers) formed Tanker Investments Ltd., under the laws of the Republic of the Marshall Islands. Tanker Investments Ltd. and its subsidiaries (collectively the Company) engage in the ownership and operation of crude oil tankers. The Company has adopted a December 31 fiscal year-end. At December 31, 2016, the Company's fleet included 18 vessels (December 31, 2015 - 20 vessels).

   These unaudited interim consolidated financial statements have been prepared in conformity with United States generally accepted accounting principles (or GAAP). The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates.

   Certain information and footnote disclosures required by GAAP for complete annual financial statements have been omitted and, therefore these interim unaudited consolidated financial statements should be read in conjunction with the Company's audited consolidated financial statements for the year ended December 31, 2015. In the opinion of management, these unaudited interim consolidated financial statements reflect all adjustments, consisting solely of a normal recurring nature, necessary to present fairly, in all material respects, the Company's unaudited consolidated financial position, results of operations, and cash flows for the period presented. Significant intercompany balances and transactions have been eliminated upon consolidation.

2. Long-Term Debt

December 31, December 31, 2016 2015 $ $

Revolving Credit Facilities due through 2020	236,917	348,608
Term Loan due through 2021	129,217	141,115
Term Loan due June 30, 2016	-	96,450
Total principal	366,134	586,173
Unamortized discount and debt issuance costs	(3,133)	(4,738)
Total debt	363,001	581,435
Less current portion	(38,061)	(143,685)
Long-term portion	324,940	437,750

As of December 31, 2016, the Company had two revolving credit facilities available, which, as at such date, provided for borrowings of up to a maximum of $311.7 million (December 31, 2015 - $373.6 million), of which $236.9 million was drawn (December 31, 2015 - $348.6 million available and fully drawn). Interest payments are based on LIBOR plus margins. At December 31, 2016, the margin was 3.38% (December 31, 2015 - 3.00% respectively). The margin ranges from 2.75% to 3.50%, depending on the fair market value of the vessels provided as collateral relative to the amount drawn on the credit facilities. The two credit facilities are collateralized by first-priority mortgages on 14 (December 31, 2015 - 14) of the Company's vessels. At December 31, 2016, the total amount available under the credit facilities reduces by $36.9 million (2017), $36.9 million (2018), $143.7 million (2019) and $94.2 million (2020). The credit facilities contain a covenant that requires the Company to maintain a free liquidity of not less than the lower of (i) $25.0 million and (ii) $2.0 million per vessel owned as long as the number of vessels owned by the Company is less than 25. If the Company owns 25 or more vessels, the covenant requires the Company to maintain a free liquidity of the aggregate of (i) $25.0 million and (ii) $1.3 million multiplied by the number of vessels owned by the Company in excess of 25. The Company is also required to maintain a minimum capitalization ratio, a minimum level of tangible net worth, a minimum ratio of net income before interest and certain non-cash items to interest expense and the fair market value of collateral vessels shall be equal to at least 150 percent of the drawn amount under the revolving credit facilities. As at December 31, 2016, the Company was in compliance with all its covenants in respect of these credit facilities.

As of December 31, 2016, the Company had one term loan (Term Loan) outstanding with an outstanding balance of $129.2 million (December 31, 2015 - $141.1 million), repayable by 2021. Of this amount, $52.0 million bears interest at LIBOR plus a margin of 0.50% and the remaining $77.2 million bears interest at a fixed rate of 5.37% (December 31, 2015 - $54.0 million and $87.1 million, respectively). The loan is collateralized by four of the Company's vessels, together with other related security. In addition, the loan requires Teekay (the Guarantor) to maintain a minimum liquidity (cash and cash equivalents) of at least $100.0 million and an aggregate of free cash and undrawn committed revolving credit lines with at least six months to maturity of at least 7.5% of Teekay's total consolidated debt which has recourse to Teekay. As at December 31, 2016, Teekay was in compliance with all their covenants in respect of the Term Loan.

As of December 31, 2015, the Company had a term loan outstanding with an outstanding balance of $96.5 million, repayable by June 30, 2016. The loan along with the related interest costs were repaid in full in the first quarter of 2016. The loan bore interest at LIBOR plus a margin of 2.50% and was collateralized by the two of the Company's vessels which were sold in the first quarter of 2016.

The weighted-average effective interest rate on the Company's long-term debt as at December 31, 2016 and December 31, 2015 was 4.11% and 3.42% respectively, excluding the guarantee fee paid to Teekay (see note 6a). The aggregate annual principal repayments required to be made by the Company subsequent to December 31, 2016 are $38.1 million (2017), $39.6 million (2018), $116.3 million (2019), $91.6 million (2020) and $80.5 million (2021).