Teekay Offshore Partners Announces Pricing of $275 Million 6.00 Percent Senior Notes Due 2019
May 22 2014 - 4:18PM
Marketwired
Teekay Offshore Partners Announces Pricing of $275 Million 6.00
Percent Senior Notes Due 2019
HAMILTON, BERMUDA--(Marketwired - May 22, 2014) - Teekay
Offshore Partners L.P. (Teekay Offshore or the
Partnership) (NYSE:TOO) announced today that it has priced its
previously announced public offering of an aggregate principal
amount of $275 million of senior unsecured notes due 2019 (the
Notes). The Notes will bear interest at a rate of 6.00
percent per year, payable quarterly on January 30, April 30, July
30 and October 30 of each year, beginning on July 30, 2014. The
Partnership has granted the underwriters of the offering a 30-day
option to purchase up to an additional $41.25 million of the Notes
on the same terms and conditions. The offering is expected to close
on May 30, 2014, subject to customary closing conditions.
The Partnership expects to use the net proceeds from the public
offering for general partnership purposes, including funding
newbuilding installments, capital conversion projects and future
acquisitions of vessels from Teekay Corporation or third parties.
Pending the application of funds for these purposes, the
Partnership expects to repay a portion of its outstanding debt
under certain of its credit facilities.
Teekay Offshore Partners L.P. is an international provider of
marine transportation, oil production and storage services to the
offshore oil industry focusing on the fast-growing, deepwater
offshore oil regions of the North Sea and Brazil. Teekay Offshore
is structured as a publicly-traded master limited partnership and
owns interests in 35 shuttle tankers (including two chartered-in
vessels and one HiLoad Dynamic Positioning (HiLoad
DP) unit), five floating production, storage and
offloading (FPSO) units, six floating storage and offtake
(FSO) units (including one committed FSO conversion unit),
four long-haul towing and anchor handling vessel newbuildings and
four conventional oil tankers. The majority of Teekay Offshore's
fleet is employed on long-term, stable contracts. In addition,
Teekay Offshore also has rights to participate in certain other
FPSO, shuttle tanker and HiLoad DP opportunities provided by Teekay
Corporation (NYSE:TK), Sevan Marine ASA (Oslo Bors: SEVAN) and
Remora AS.
Teekay Offshore intends to apply to have the Notes listed on the
New York Stock Exchange.
The joint book-running managers and structuring agents for this
offering are Sterne, Agee & Leach, Inc. and DNB Markets, Inc.
ABN AMRO, Raymond James and Scotiabank are acting as co-managers
for this offering.
Copies of the preliminary prospectus supplement, final
prospectus supplement (when available) and accompanying base
prospectus (together, the Prospectus) related to this
offering may be obtained from Sterne, Agee & Leach, Inc.,
Prospectus Department, 277 Park Avenue, New York, New York 10172,
Email: syndicate@sterneagee.com; or DNB Markets, Inc., 200 Park
Avenue, 31st Floor, New York, New York, 10166, Tel.: (212)
551-9814.
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 the Prospectus. The Notes will be offered and sold
pursuant to an effective registration statement on Form F-3, which
was filed with the Securities and Exchange Commission (the
SEC) on May 20, 2014, and the 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. 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 applicable securities laws.
For Investor Relations enquiries contact:Ryan Hamilton+1 (604)
609-6442
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