This excerpt taken from the TK 6-K filed May 19, 2005.
Aframax and Suezmax Tankers. As at March 31, 2005, the Company was party to capital leases on one Aframax tanker and four Suezmax tankers. Under the terms of the lease arrangements, which include the Companys contractual right to full operation of the vessels pursuant to bareboat charters, the Company is required to purchase these vessels at the end of their respective lease terms for a specified price. As at March 31, 2005, the weighted-average interest rate implicit in these capital leases was 7.8%. As at March 31, 2005, the remaining commitments under these capital leases, including the purchase obligations, approximated $276.4 million (including imputed interest of $55.1 million), repayable as follows: