Teekay LNG Partners Announces Pricing of Series B Preferred Offering
October 16 2017 - 5:27PM
Teekay LNG Partners L.P. (Teekay LNG or the Partnership) (NYSE:TGP)
announced today that it has priced its public offering of 6,000,000
8.5% Series B Fixed-to-Floating Rate Cumulative Redeemable
Perpetual Preferred Units (Series B Preferred Units), representing
limited partner interests, at $25.00 per unit. Distributions
will be payable on the Series B Preferred Units (i) from and
including the original issue date to, but excluding October 15,
2027 at a fixed rate equal to 8.5% per annum of the stated
liquidation preference of $25.00 per unit and (ii) from and
including October 15, 2027, at a floating rate equal to three-month
LIBOR plus a spread of 624.1 basis points. The offering is
expected to close on October 23, 2017. Teekay LNG has granted
the underwriters a 30-day option to purchase up to an additional
900,000 Series B Preferred Units. The Partnership expects to
use the net proceeds from the public offering for general
partnership purposes, which may include funding installment
payments on newbuilding deliveries and debt repayments.
Teekay LNG is one of the world’s largest
independent owners and operators of LNG carriers, providing LNG,
LPG and crude oil marine transportation services primarily under
long-term, fixed-rate charter contracts through its interests in 50
LNG carriers (including 17 newbuildings), 30 LPG/Multigas carriers
(including three newbuildings) and five conventional tankers. The
Partnership’s interests in these vessels range from 20 to 100
percent. Teekay LNG is a publicly-traded master limited partnership
(MLP) formed by Teekay Corporation as part of its strategy to
expand its operations in the LNG and LPG shipping sectors.
Teekay LNG intends to apply to have the Series B
Preferred Units listed on the New York Stock Exchange.
The joint book-running managers for this
offering are Morgan Stanley & Co. LLC and UBS Securities LLC.
The co-managers for this offering are ABN AMRO Securities (USA)
LLC, Credit Agricole Securities (USA) Inc., Danske Markets Inc.,
and ING Financial Markets LLC.
When available, copies of the prospectus
supplement and accompanying base prospectus related to this
offering may be obtained from Morgan Stanley & Co. LLC, 180
Varick Street, 2nd Floor, New York, NY 10014, Attn: Prospectus
Department, telephone (866) 718-1649; or UBS Securities LLC, 1285
Avenue of the Americas, New York, NY 10019, Attn: Prospectus
Department, telephone (888) 827-7275.
This news release does not constitute an offer
to sell or a solicitation of an offer to buy the securities
described herein, nor shall there be any sale of these securities
in any state or jurisdiction in which such an offer, solicitation
or sale would be unlawful prior to registration or qualification
under the securities laws of any such jurisdiction. The Series B
Preferred Units are being offered and sold pursuant to an effective
registration statement on Form F-3, which was filed with the
Securities and Exchange Commission (SEC) on October 16, 2017.
The statements in this press release that are
not historical facts may be forward-looking statements. These
forward-looking statements involve risks and uncertainties that
could cause the outcome to be materially different. These risks and
uncertainties include, but are not limited to, those discussed in
Teekay LNG’s public filings with the SEC. Teekay LNG undertakes no
obligation to revise or update any forward looking statements,
unless required to do so under the securities laws.
For Investor Relations enquiries
contact:
Ryan HamiltonTel: +1 (604) 609-6442Website: www.teekay.com
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