Teekay Offshore Partners Announces Pricing of Series E Preferred Units
January 16 2018 - 4:21PM
Teekay Offshore Partners L.P. (Teekay Offshore or the Partnership)
(NYSE:TOO) announced today that it has priced its public offering
of 4,600,000 8.875% Series E Fixed-to-Floating Rate Cumulative
Redeemable Perpetual Preferred Units (Series E Preferred Units),
representing limited partner interests, at $25.00 per unit.
Distributions will be payable on the Series E Preferred Units
(i) from and including the original issue date to, but excluding
February 15, 2025 at a fixed rate equal to 8.875% per annum of the
stated liquidation preference of $25.00 per unit and (ii) from and
including February 15, 2025, at a floating rate equal to
three-month LIBOR plus a spread of 640.7 basis points. The
offering is expected to close on January 23, 2018. Teekay
Offshore has granted the underwriters a 30-day option to purchase
up to an additional 690,000 Series E 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 newbuildings and conversion
projects and debt repayments.
Teekay Offshore Partners L.P. is an
international provider of marine transportation, oil production,
storage, long-distance towing and offshore installation and
maintenance and safety services to the oil industry, primarily
focusing on oil production-related activities of its customers and
operating in offshore oil regions of the North Sea, Brazil and the
East Coast of Canada. Teekay Offshore is structured as a
publicly-traded master limited partnership (MLP), comprised of 63
offshore assets (including newbuildings), which includes floating
production, storage and offloading (FPSO) units, shuttle tankers,
floating storage and offtake (FSO) units, a unit for maintenance
and safety (UMS), long-distance towing and offshore installation
vessels and conventional tankers.
Teekay Offshore intends to apply to have the
Series E Preferred Units listed on the New York Stock
Exchange.
The joint book-running managers for this
offering are Morgan Stanley & Co. LLC, UBS Securities LLC, J.P.
Morgan Securities LLC and Stifel, Nicolaus & Company,
Incorporated. The co-managers for this offering are
Commonwealth Bank of Australia, ING Financial Markets LLC and
Scotia Capital (USA) Inc.
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; UBS Securities LLC, 1285
Avenue of the Americas, New York, NY 10019, Attn: Prospectus
Department, telephone (888) 827-7275; J.P. Morgan Securities LLC,
383 Madison Avenue, New York, New York 10179, Attention: Investment
Grade Syndicate Desk – 3rd floor, telephone: (212) 834-4533; or
Stifel, Nicolaus & Company, Incorporated, 1 South Street, 15th
Floor, Baltimore, MD 21202, Attn: Prospectus Department, telephone
(855) 300-7136.
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 E
Preferred Units are being offered and sold pursuant to an effective
registration statement on Form F-3, filed with the Securities
and Exchange Commission (SEC).
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 Offshore’s public filings with the SEC. Teekay Offshore
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) 609-2963
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