Teekay Corporation (Teekay) (NYSE:TK) and Teekay Offshore Partners
L.P. (Teekay Offshore or the Partnership) (NYSE:TOO) today
announced that they have completed their previously announced
comprehensive transaction with Brookfield Business Partners L.P.
(NYSE:BBU) (TSX: BBU.UN), together with its institutional partners
(collectively Brookfield).
“With this comprehensive transaction now
completed, Teekay looks forward to working with Brookfield as
co-sponsors of Teekay Offshore to support the Partnership’s
continued growth,” commented Kenneth Hvid, Teekay’s President and
CEO. “This transaction has significantly strengthened Teekay
Offshore’s capital structure and together with management and the
Board of Directors, we are now in a position to focus on developing
the next phase of the Partnership’s strategy.”
“With our existing in-progress growth projects
now fully financed and nearing completion, our top priority is to
deliver these projects into operation, which are expected to
contribute approximately an incremental $200 million of run-rate
annual cash flow from vessel operations,” commented Ingvild Sæther,
President and CEO of Teekay Offshore Group Ltd.
Ms. Sæther continued “With a stronger balance
sheet, access to capital, market-leading positions and presence in
attractive markets, we believe Teekay Offshore is well-positioned
to take advantage of future opportunities as the global energy
market recovers.”
Teekay Offshore also announced today the
following changes to the Board of Directors of Teekay Offshore GP
LLC (TOO GP), the general partner of the Partnership:
- C. Sean Day and Carl Mikael L.L. von Mentzer have retired from
their positions as directors, effective September 25, 2017, after
serving 11 years on the TOO GP Board.
- Concurrently with the closing of the transaction, the following
four individuals nominated by Brookfield were elected to the TOO GP
Board: David Levenson, Jim Reid, Walter Weathers and Bradley
Weismiller.
“Sean and Mikael have been instrumental in building Teekay
Offshore since the Partnership’s initial public offering in 2006,”
commented Bill Utt, TOO GP’s Chairman. “I would like to thank
Sean and Mikael for all their invaluable support over the past 11
years and look forward to working with the new board members as we
set our sights on the future.”
David Levenson is a Managing Partner at
Brookfield and oversees Brookfield’s opportunistic credit
initiatives, including the Brookfield Credit Opportunity Fund and
Brookfield Private Credit. Mr. Levenson joined Brookfield in 2004
and has extensive experience in mergers and acquisitions, corporate
finance and restructurings. Most recently, he served as Chief
Investment Officer in Brookfield’s Infrastructure Group focused on
growing its transportation platform. Prior to joining
Brookfield, Mr. Levenson worked in investment banking and private
equity. He received a Bachelor of Commerce degree from McGill
University and an MBA from Harvard Business School. Mr.
Levenson is also the holder of the Chartered Financial Analyst
designation.
Jim Reid is a Managing Partner and a Chief
Investment Officer in Brookfield’s Private Equity Group. Mr.
Reid is responsible for originating, evaluating and structuring
investments and financings in the energy sector and overseeing
operations in Brookfield’s energy segment. He established
Brookfield’s Calgary office in 2003 after spending several years as
a Chief Financial Officer for two oil and gas exploration and
production companies in Western Canada. Mr. Reid obtained his
Chartered Accountant designation at Price WaterhouseCoopers in
Toronto and holds a Bachelor of Arts in Commerce from the
University of Toronto.
Walter Weathers is a Senior Vice President for
Brookfield Asset Management, focused on private equity investments
in the oil and gas sector. Prior to his current position, Mr.
Weathers served in various roles within Cameron International
Corporation (a company owned by Schlumberger), including Vice
President of Finance, Vice President of Rig Equipment Houston, Vice
President of Marketing & Strategy, and Director of Mergers
& Acquisitions. Before joining Cameron, Mr. Weathers
served as Vice President Finance for NATCO Group and was a
principal of The Catalyst Group. Mr. Weathers holds an MBA
from the University of Texas McCombs School of Business and a
Bachelor of Science from the United States Naval Academy, and he is
a veteran of the United States Marine Corps.
Bradley Weismiller has been Chief Financial
Officer, Europe for Brookfield Asset Management since 2014 and is
responsible for Brookfield’s financing strategy and execution
across all European assets. In this capacity, he is
responsible for ongoing counterparty relationship management and
finance market interaction, as well as structuring and execution of
specific real estate and project financings throughout various loan
or bond markets where appropriate. Additionally, Mr.
Weismiller oversees the strategy and execution of foreign exchange
and interest rate risk management across Brookfield’s businesses
globally. Mr. Weismiller received his BBA in Finance from the
Mason School of Business at the College of William and Mary in
Virginia.
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). The general partners own all of
the outstanding incentive distribution rights of these entities. 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 consolidated assets of
approximately $13 billion, comprised of approximately 220 liquefied
gas, offshore, and conventional tanker assets. With offices in 14
countries and approximately 8,000 seagoing and shore-based
employees, Teekay provides a comprehensive set of marine services
to the world's leading oil and gas companies.
About Teekay Offshore
Teekay Offshore Partners L.P. is an
international provider of marine transportation, oil production,
storage, long-distance towing and offshore installation and
maintenance and safety services to the oil industry, primarily
focusing on oil production-related activities of its customers and
operating in offshore oil regions of the North Sea, Brazil and the
East Coast of Canada. Teekay Offshore is structured as a
publicly-traded master limited partnership (MLP) with consolidated
assets of approximately $5.6 billion, comprised of 62 offshore
assets, including shuttle tankers, floating production, storage and
offloading (FPSO) units, floating storage and offtake (FSO) units,
units for maintenance and safety (UMS), long-distance towing and
offshore installation vessels and conventional tankers. The
majority of Teekay Offshore’s fleet is employed on medium-term,
stable contracts.
Teekay Offshore's common units and the Series A
and B preferred units trade on the New York Stock Exchange under
the symbol "TOO", “TOO PR A”, and “TOO PR B”, respectively.
About Brookfield Business Partners LP
Brookfield Business Partners is a business
services and industrial company focused on owning and operating
high-quality businesses that benefit from barriers to entry and/or
low production costs. Brookfield Business Partners is listed on the
New York and Toronto stock exchanges. Further information is
available at http://bbu.brookfield.com. Important information may
be disseminated exclusively via the website; investors should
consult the site to access this information.
Brookfield Business Partners is the flagship
listed business services and industrials company of Brookfield
Asset Management, a leading global alternative asset manager with
over $250 billion of assets under management. For more information,
go to www.brookfield.com.
Brookfield Business Partners limited partnership
units trade on the New York Stock Exchange and the Toronto Stock
Exchange under the symbols “BBU” and “BBU.UN”, respectively.
For Investor Relations enquiries
contact:
Ryan HamiltonTel: +1 (604) 844-6654Website:
www.teekay.com
Forward Looking Statements
This release contains forward-looking statements
(as defined in Section 21E of the U.S. Securities Exchange Act of
1934, as amended) that involve risks and uncertainties.
Forward-looking statements in this release include, in particular,
statements regarding: the expected effect of the comprehensive
transaction with Brookfield on Teekay Offshore’s operations and
financial condition, including its ability to benefit from an
energy market recovery, future access to capital, and ability to
take advantage of future growth opportunities; and future
incremental cash flow from vessel operations to be provided by the
Partnership’s existing growth projects and the timing for delivery
of these projects. Forward-looking statements are necessary
estimates reflecting the judgment of senior management, involve
known and unknown risks and are based upon a number of assumptions
and estimates that are inherently subject to significant
uncertainties and contingencies, many of which are beyond our
control. Actual results may differ materially from those expressed
or implied by such forward-looking statements. Important factors
that could cause actual results to differ materially include, but
are not limited to: failure to realize the expected benefits of the
comprehensive transaction; delays and cost overruns relating to the
existing growth projects; changes in exploration, production and
storage of offshore oil and gas, either generally or in particular
regions that would impact expected future growth; and those factors
discussed in the Partnership's filings from time to time with
the U.S. Securities and Exchange Commission, including its Annual
Report on Form 20-F for the fiscal year ended December 31, 2016.
The Partnership expressly disclaims any obligation or undertaking
to release publicly any updates or revisions to any forward-looking
statements contained herein to reflect any change in the
Partnership's expectations with respect thereto or any change in
events, conditions or circumstances on which any such statement is
based.
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