Teekay LNG Announces Major Public Offering
Bermuda-based Teekay LNG Partners L.P. announced yesterday [Nov. 2] that it plans to offer 5,500,000 common units representing limited partner interests in a public offering. Teekay LNG expects to grant the underwriters a 30-day option to purchase an additional 825,000 common units.
The partnership intends to use a portion of the net proceeds from the public offering to fund its share of the equity purchase price for ownership interests in eight liquefied natural gas [LNG] carriers that the joint venture between the partnership and Marubeni Corporation plans to acquire from A.P. Moller-Maersk A/S, if and as such payments become due. All interim and remaining net proceeds from the offering will be used to repay amounts outstanding on one of the partnership’s revolving credit facilities. This offering is not contingent on the closing of the acquisition, and the acquisition is not contingent on the closing of this offering.
Teekay LNG is a publicly-traded master limited partnership formed by Teekay Corporation as part of its strategy to expand its operations in the LNG and liquefied petroleum gas shipping sectors.
Teekay LNG provides LNG, LPG and crude oil marine transportation services under long-term, fixed-rate charter contracts with major energy and utility companies through its fleet of 20 LNG carriers, five LPG carriers, ten Suezmax class crude oil tankers and one Handymax product tanker. The Partnership’s interests in these vessels range from 33 to 100 percent.
Teekay LNG’s common units trade on the New York Stock Exchange.
