Teekay LNG Partners Announces Pricing of Follow-On Offering
April 17 2008 - 6:10PM
Marketwired
HAMILTON, BERMUDA (NYSE: TGP) announced today that it has priced
its follow-on public offering of 5,000,000 common units, which
represent limited partner interests, at $28.75 per unit. Teekay LNG
has granted the underwriters a 30-day option to purchase up to an
additional 750,000 units to cover over-allotments, if any. The
Partnership expects to use the proceeds of the offering to repay
amounts outstanding on one of its revolving credit facilities,
which has been used to fund vessel acquisitions.
In addition and concurrently with the closing of the public
offering, Teekay Corporation (Teekay), the parent of our general
partner, has agreed that it will purchase directly from Teekay LNG
1,739,130 common units at $28.75 per unit.
Teekay LNG Partners L.P. is a publicly-traded master limited
partnership formed by Teekay (NYSE: TK) as part of its strategy to
expand its operations in the liquefied natural gas (LNG) and
liquefied petroleum gas (LPG) shipping sectors. Teekay LNG provides
LNG, LPG and crude oil marine transportation services under
long-term, fixed-rate charter contracts with major energy and
utility companies through its fleet of fifteen LNG carriers, four
LPG carriers and eight Suezmax class crude oil tankers. Six of the
fifteen LNG carriers and three of the four LPG carriers are
newbuildings scheduled for delivery between the second quarter of
2008 and mid-2009.
Teekay LNG's common units trade on the New York Stock Exchange
under the symbol "TGP".
After the offering, Teekay will own approximately a 58% interest
in Teekay LNG, including common units, subordinated units and its
general partner interest. This ownership interest will be reduced
to approximately 57% if the underwriters exercise their
overallotment option in full. The offering is expected to close on
April 23, 2008.
The joint book running managers for this offering are Citi and
Wachovia Securities. The co-managers are UBS Investment Bank,
Raymond James & Associates, Inc., Deutsche Bank Securities and
Dahlman Rose & Company.
When available, copies of the prospectus supplement and
accompanying base prospectus related to this offering may be
obtained from Citigroup Global Markets Inc., Brooklyn Army
Terminal, 140 58th Street, Brooklyn, New York, 11220, Attention:
Prospectus Department; phone: (800) 831-9146; or Wachovia Capital
Markets, LLC, 375 Park Avenue, New York, New York, 10152,
Attention: Equity Syndicate Department; Email:
equity.syndicate@wachovia.com.
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. This offering may be made
only by means of a prospectus supplement and accompanying base
prospectus.
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.
Contacts: Teekay LNG Partners L.P. Scott Gayton Investor
Relations Enquiries Contact (604) 609-4740 Teekay LNG Partners L.P.
Alana Duffy Media Enquiries Contact (604) 844-6605 Website:
www.teekaylng.com
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