Teekay Plans Equity Sale To Buy Vessels
Bermuda based Teekay Offshore Partners L.P. announced on Thursday (Dec 2) that it has priced its follow-on public offering of 5,600,000 common units, representing limited partner interests, at $27.84 per unit.
Teekay Offshore has granted the underwriters a 30-day option to purchase up to an additional 840,000 units to cover over-allotments, if any. The offering is expected to close on December 8, 2010.
The Partnership expects to use the net proceeds from the public offering for general partnership purposes, including funding the acquisitions of vessels that Teekay Corporation has offered or may offer to it. Pending the application of funds for these purposes, the Partnership expects to repay a portion of its outstanding debt under its revolving credit facilities.
The joint book-running managers for this offering are BofA Merrill Lynch, Citi, and UBS Investment Bank. The co-managers are Raymond James, Wells Fargo Securities, Credit Agricole, DnBNOR Markets and ING.
Shares of Teekay Offshore, which is a publicly traded master limited partnership formed by Teekay Corp., fell $1.28, or 4.4 percent, to $27.83 in afternoon trading.
Teekay Offshore Partners L.P. is a publicly-traded master limited partnership formed by Teekay Corporation and is an international provider of marine transportation and storage services to the offshore oil industry.
