Teekay Corporation Agrees to Sell Remaining Interests in Teekay Offshore to Brookfield for $100 Million
April 29 2019 - 11:54PM
Teekay Corporation (Teekay or the Company) (NYSE: TK) announced
today an agreement to sell to Brookfield Business Partners L.P.
(NYSE: BBU)(TSX: BBU.UN), together with its institutional partners
(collectively Brookfield), all of the Company’s remaining interests
in Teekay Offshore Partners L.P. (Teekay Offshore) (NYSE: TOO),
which includes the Company’s 49% general partner interest, common
units, warrants, and an outstanding $25 million loan from the
Company to Teekay Offshore, for total proceeds of $100 million in
cash.
The transaction is expected to be completed in
early to mid-May 2019.
“The divestment of our remaining interests in
Teekay Offshore is aligned with Teekay’s current strategy to
simplify and focus on our core gas and tanker businesses,”
commented Kenneth Hvid, Teekay’s President and Chief Executive
Officer. “The proceeds from this transaction allow us to
further strengthen Teekay Corporation’s balance sheet and credit
profile, while significantly enhancing our near-term financial
flexibility and range of options to address our near-term bond
maturity.”
About Teekay
Teekay is a leading provider of international
crude oil and gas marine transportation. Teekay provides these
services primarily through its directly-owned fleet and its
controlling ownership interests in Teekay LNG Partners L.P.
(NYSE:TGP), the world’s third largest independent owner and
operator of LNG carriers, and in Teekay Tankers Ltd. (NYSE:TNK),
one of the world’s largest owners and operators of mid-sized crude
tankers. Teekay (excluding Teekay Offshore) manages and operates
total assets under management of approximately $11 billion,
comprised of 155 liquefied gas, offshore, and conventional tanker
assets. With offices in 12 countries and approximately 5,600
seagoing and shore-based employees, Teekay provides a comprehensive
set of marine services to the world’s leading oil and gas
companies.
Teekay’s common stock is listed on the New York
Stock Exchange where it trades under the symbol “TK”.
Forward Looking Statement
This release contains forward-looking statements
(as defined in Section 21E of the Securities Exchange Act of 1934,
as amended) which reflect management’s current views with respect
to certain future events and performance, including: the expected
timing and completion of the transaction with Brookfield and the
expected benefits to the Company of such transaction; the Company’s
current strategy; and alternatives to address the Company’s
upcoming bond maturity. The following factors are among those that
could cause actual results to differ materially from the
forward-looking statements, which involve risks and uncertainties,
and that should be considered in evaluating any such statement,
including: satisfaction of customary closing conditions to the
transaction; the Company’s ability to implement its current
strategy and to repay or refinance its 2020 bonds; and other
factors discussed in Teekay’s filings from time to time with the
SEC, including its Annual Report on Form 20-F for the fiscal year
ended December 31, 2018. Teekay expressly disclaims any obligation
or undertaking to release publicly any updates or revisions to any
forward-looking statements contained herein to reflect any change
in Teekay’s expectations with respect thereto or any change in
events, conditions or circumstances on which any such statement is
based.
For Investor Relationsenquiries
contact:
Ryan HamiltonTel: +1 (604) 609-2963Website:
www.teekay.com
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