Teekay Offshore Partners Announces Pricing of Follow-On Offering
June 12 2008 - 8:07PM
Marketwired
HAMILTON, BERMUDA (NYSE: TOO) announced today that it has priced
its follow-on public offering of 7,000,000 common units, which
represent limited partner interests, at $20.00 per unit. Teekay
Offshore has granted the underwriters a 30-day option to purchase
up to an additional 1,050,000 units to cover over-allotments, if
any.
In addition and concurrently with the closing of the public
offering, Teekay Corporation (Teekay) has agreed that it will
purchase directly from Teekay Offshore 3,250,000 common units at
$20.00 per unit.
The Partnership expects to use the net proceeds from the public
offering and the concurrent private placement to purchase an
additional 25.0% interest in Teekay Offshore Operating L.P. (OPCO),
a Marshall Islands limited partnership, from Teekay, for $205.0
million. If the underwriters exercise their option to purchase
additional common units to cover over-allotments, the Partnership
will use those net proceeds to partially repay amounts it borrowed
from OPCO to facilitate the purchase of three vessels in 2007.
Concurrently with the closing of the offering, OPCO will also
purchase two 2008-built Aframax lightering tankers.
Teekay Offshore Partners L.P. is a publicly-traded master
limited partnership formed by Teekay (NYSE: TK), and is an
international provider of marine transportation and storage
services to the offshore oil industry. Teekay Offshore currently
owns a 26% interest in and controls OPCO with a fleet of 34 shuttle
tankers (nine of which are chartered-in), four floating storage and
offtake (FSO) units and nine conventional crude oil Aframax
tankers. The Partnership also has direct ownership interests in two
shuttle tankers and one FSO.
Teekay Offshore's common units trade on the New York Stock
Exchange under the symbol "TOO".
After the offering and the concurrent private placement, Teekay
will own approximately a 51% interest in Teekay Offshore, including
common units, subordinated units and its general partner interest.
This ownership interest will be reduced to approximately 49% if the
underwriters exercise their over-allotment option in full. The
offering is expected to close on June 18, 2008. Subsequent to the
offering, Teekay Offshore will own 51% of OPCO.
The joint book running managers for this offering are Citi,
Merrill Lynch & Co. and Lehman Brothers. The co-managers are
Morgan Stanley, JPMorgan, and Raymond James.
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; Merrill Lynch,
Pierce, Fenner & Smith Incorporated, 4 World Financial Center,
Attention: Prospectus Department, New York, New York 10080, or
Lehman Brothers, c/o Broadridge Integrated Distribution Services,
1155 Long Island Avenue, Edgewood, NY 11717, via fax at
631-254-7140 or via email at qiana.smith@broadridge.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, which have been filed with the 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.
Contacts: Teekay Offshore Partners L.P. Scott Gayton Investor
Relations Enquiries (604) 609-4740 Teekay Offshore Partners L.P.
Alana Duffy Media Enquiries (604) 844-6605 Website:
www.teekayoffshore.com
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