Teekay Corporation Announces Pricing of Convertible Senior Notes Offering
January 24 2018 - 8:46AM
Teekay Corporation (Teekay or the Company) (NYSE:TK) today
announced that it has priced its offering of $125 million aggregate
principal amount of 5.0% Convertible Senior Notes due 2023 (the
Convertible Notes) in a private offering. The Convertible Notes
were offered to qualified institutional buyers pursuant to Rule
144A under the Securities Act of 1933, as amended (the Securities
Act). Teekay has granted the initial purchasers an option to
purchase up to an additional $25 million aggregate principal amount
of the Convertible Notes on the same terms and conditions, solely
to cover over-allotments.
The Convertible Notes will be the general senior
unsecured obligations of Teekay and will accrue interest at a rate
of 5.0%, payable semi-annually in arrears, and will mature on
January 15, 2023. The Convertible Notes will be convertible into
Teekay’s common stock, initially at a rate of 85.4701 shares of
common stock per $1,000 principal amount of Convertible Notes. This
represents an initial effective conversion price of approximately
$11.70 per share of common stock. The initial conversion price
represents a premium of 20.0% to the concurrent common stock
offering price of $9.75 per share described below.
The Company also announced today by separate
press release that it has priced its registered public offering
pursuant to an effective shelf registration statement of 10 million
shares of its common stock at $9.75 per share. The Company has
granted the underwriters in that offering a 30-day option to
purchase up to an additional 1.5 million shares of common stock.
Nothing contained herein shall constitute an offer to sell or the
solicitation of an offer to buy the common stock.
The Company intends to use the net proceeds from
the offerings for general corporate purposes, which may include,
among other things, repaying a portion of outstanding indebtedness
and funding working capital. Teekay expects to close both offerings
on January 26, 2018, subject to the satisfaction of customary
closing conditions.
This press release is being issued pursuant to
Rule 135c under the Securities Act, and does not constitute an
offer to sell, or the solicitation of an offer to buy, these
securities (including the shares of Teekay’s common stock into
which the Convertible Notes are convertible), nor will there be any
sale of these securities in any state or jurisdiction in which such
offer, solicitation or sale is not permitted. Any offers of the
Convertible Notes will be made only to qualified institutional
buyers in reliance on Rule 144A under the Securities Act by means
of a private offering memorandum.
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’s public filings with the SEC. Teekay undertakes no
obligation to revise or update any forward looking statements,
unless required to do so under the securities laws.
About Teekay
Teekay Corporation operates in the marine
midstream space through its ownership of the general partner and a
portion of the outstanding limited partner interests in Teekay LNG
Partners L.P. (NYSE:TGP) and an interest in the general partner and
a portion of the outstanding limited partner interests in Teekay
Offshore Partners L.P. (NYSE:TOO). In addition, Teekay has a
controlling ownership interest in Teekay Tankers Ltd. (NYSE:TNK)
and directly owns a fleet of vessels. The combined Teekay entities
manage and operate approximately 210 liquefied gas, offshore, and
conventional tanker assets.
Teekay’s common stock is listed on the New York
Stock Exchange where it trades under the symbol “TK”.
For Investor Relations
enquiries contact:
Ryan HamiltonTel: +1 (604) 609-2963
Teekay Offshore Partners (NYSE:TOO)
Historical Stock Chart
From Aug 2024 to Sep 2024
Teekay Offshore Partners (NYSE:TOO)
Historical Stock Chart
From Sep 2023 to Sep 2024