Teekay Corporation Announces Closing Of Stonepeak’s Acquisition of Teekay LNG
January 13 2022 - 8:47AM
Teekay Corporation (Teekay) (NYSE:TK) announces the closing of the
previously announced merger of Teekay LNG Partners L.P. (Teekay
LNG) (NYSE:TGP) with investment vehicles managed by Stonepeak (the
Merger). As part of the Merger, Teekay sold all of its ownership
interest in Teekay LNG, including approximately 36.0 million Teekay
LNG common units, and Teekay GP L.L.C., Teekay LNG’s general
partner (equivalent to approximately 1.6 million Teekay LNG common
units), for $17.00 per common unit or common unit equivalent in
cash, and transferred various management services companies to
Teekay LNG that provide the operations for Teekay LNG and certain
of its joint ventures under existing management services contracts.
As consideration, Teekay received total gross cash proceeds of
approximately $641 million.
In mid-December 2021, Teekay elected to redeem
all of its outstanding 9.25 percent Senior Secured Notes due in
November 2022 (the 2022 Notes) under the related indenture at
102.313 percent of the principal amount. As of January 12, 2022,
Teekay had $243.4 million total aggregate principal amount of the
2022 Notes outstanding. The redemption is expected to be completed
on January 14, 2022. In addition, on January 10, 2022, Teekay
announced a cash tender offer for any and all of its outstanding
5.0 percent Convertible Senior Notes due in January 2023 (the 2023
Notes) at 102.0 percent of the principal amount. As of January 12,
2022, Teekay had $112.2 million total aggregate principal amount of
the 2023 Notes outstanding. The cash tender is expected to be
completed in February 2022.
“Teekay’s operating franchise and
industry-leading capabilities have been developed over our nearly
50-year history as a leader in the constantly evolving energy and
transportation sectors. We believe the significant financial
strength we now have following this transaction puts us in an
excellent position to pursue a range of attractive investment
opportunities that leverage Teekay’s core competencies and
institutional knowledge to create long-term shareholder value,”
commented Kenneth Hvid, Teekay’s President and CEO. “Following the
retirement of our debt, the main components of our balance sheet
will consist of cash of approximately $325 million, equivalent to
$3.20 per share alone; an economic interest in Teekay Tankers Ltd.
of approximately 30 percent; and a profitable asset-lite marine
services business in Australia. We are excited about the
flexibility that this gives us as we see both positive fundamentals
in the tanker sector and a growing demand for new transportation
solutions that will enable the shift to a lower-carbon world.”
About Teekay
Teekay is a leading provider of international
crude oil and other marine transportation services. Teekay provides
these services directly and through its controlling ownership
interest in Teekay Tankers Ltd. (NYSE:TNK), one of the world’s
largest owners and operators of mid-sized crude tankers. The
consolidated Teekay entities manage and operate total assets under
management of approximately $2 billion, comprised of approximately
55 conventional tankers and other marine assets. With offices in 8
countries and approximately 2,500 seagoing and shore-based
employees, Teekay provides a comprehensive set of marine services
to the world’s leading energy companies.
Teekay’s common stock is listed on the New York
Stock Exchange where it trades under the symbol “TK”.
For Investor Relationsenquiries
contact:
Ryan HamiltonTel: +1 (604) 609-2963Website: www.teekay.com
Forward Looking Statements
This press release contains forward-looking
statements within the meaning of Section 27A of the U.S. Securities
Act of 1933, as amended, and Section 21E of the U.S. Securities
Exchange Act of 1934, as amended. All statements included in this
press release, other than statements of historical fact, are
forward-looking statements. When used in this press release, the
words “expect,” “believe,” “anticipate,” “plan,” “intend,”
“estimate,” “may,” “will” or similar words are intended to identify
forward-looking statements. Readers are cautioned not to place
undue reliance on these forward-looking statements and any such
forward-looking statements are qualified in their entirety by
reference to the following cautionary statements. All
forward-looking statements speak only as of the date hereof and are
based on current expectations and involve a number of assumptions,
risks and uncertainties that could cause actual results to differ
materially from such forward-looking statements. Forward-looking
statements in this press release include: the timing and certainty
of completing Teekay’s redemption of its 9.25 percent Senior
Secured Notes and cash tender offer for its 5.0 percent Convertible
Senior Notes; the ability of Teekay’s operating franchise,
capabilities, knowledge, and financial positioning to create
long-term shareholder value; the Company’s expected
post-transaction financial position; future tanker market
fundamentals and timing of an eventual tanker market recovery; the
demand for new lower-carbon transportation solutions; and future
investment opportunities.
Actual results may differ materially from those
indicated by such forward-looking statements. In addition, the
forward-looking statements represent Teekay’s views as of the date
on which such statements were made. It is anticipated that
subsequent events and developments may cause these views to change.
These forward-looking statements should not be relied upon as
representing views as of any date subsequent to the date hereof.
Additional factors that may affect the business or financial
results of Teekay include, among others: the satisfaction or waiver
of closing conditions to the redemption of the 2022 Notes and to
the tender offer relating to the 2023 Notes; changes in the supply
and demand for tankers and new lower-carbon transportation
solutions; future growth opportunities available to Teekay and its
ability to successfully pursue them; and other factors described in
the risk factors or other disclosures included in its filings with
the SEC, including Teekay’s Annual Report on Form 20-F for the year
ended December 31, 2020, as updated by subsequent filings with or
submissions to the SEC. Teekay expressly disclaims a duty to
provide updates to forward-looking statements, whether as a result
of new information, future events or other occurrences, except as
required by applicable law.
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