Teekay Offshore Partners Secures New $414 Million Debt Facility for Four Shuttle Tanker Newbuilds
April 04 2019 - 4:09PM
Teekay Offshore Partners L.P. (Teekay Offshore or the Partnership)
(NYSE:TOO) announced today that it has secured a new $414 million
long-term debt facility that will be used to finance four
LNG-fueled Suezmax DP2 shuttle tanker newbuildings. Upon
delivery in 2019 and 2020, two of the vessels will commence
operations under the Partnership’s Master Agreement with Equinor,
while the remaining two vessels will join the Partnership’s
contract of affreightment (CoA) shuttle tanker portfolio in the
North Sea. The new facility is funded and guaranteed by both
Canadian and Norwegian export credit agencies, and commercial banks
and bears interest at LIBOR + 225 basis points with a tenor for up
to 12 years from the delivery date of each vessel and a blended
profile of 18 years.
“We are grateful for the continued strong
support we receive from our growing bank group, as represented by
our new $414 million debt facility,” commented Ingvild Sæther,
President and CEO of Teekay Offshore Group Ltd.
About Teekay Offshore
Teekay Offshore Partners L.P. is a leading
international midstream services provider to the offshore oil
production industry, primarily focused on the ownership and
operation of critical infrastructure assets in offshore oil regions
of the North Sea, Brazil and the East Coast of Canada. Teekay
Offshore has consolidated assets of approximately $5.3 billion,
comprised of 60 offshore assets, including floating production,
storage and offloading (FPSO) units, shuttle tankers (including six
newbuildings), floating storage and offtake (FSO) units,
long-distance towing and offshore installation vessels, and a unit
for maintenance and safety (UMS). The majority of Teekay Offshore’s
fleet is employed on medium-term, stable contracts. Brookfield
Business Partners L.P. (NYSE:BBU)(TSX:BBU.UN), together with its
institutional partners (collectively Brookfield), and Teekay
Corporation (NYSE:TK) own 51 percent and 49 percent, respectively,
of Teekay Offshore’s general partner.
Teekay Offshore's common units and preferred
units trade on the New York Stock Exchange under the symbols "TOO",
"TOO PR A", "TOO PR B" and “TOO PR E”, respectively.
For Investor Relationsenquiries
contact:
Ryan HamiltonTel: +1 (604) 609-2963Website:
www.teekay.com
Forward-Looking Statements
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 timing of
shuttle tanker newbuildings and the commencement of related
contracts. 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: shipyard delivery
delays and cost overruns; delays in the commencement of charter
contracts; and other factors discussed in Teekay Offshore’s filings
from time to time with the SEC, including its Report on Form 20-F
for the fiscal year ended December 31, 2018. The Partnership
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 the Partnership’s
expectations with respect thereto or any change in events,
conditions or circumstances on which any such statement is
based.
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