Teekay Offshore Partners Announces Brookfield Has Acquired a Controlling Interest in Its General Partner and Change of Contro...
July 03 2018 - 1:36AM
Teekay Offshore Partners L.P. (Teekay Offshore or the Partnership)
(NYSE:TOO) announced today that Brookfield Business Partners L.P.
(NYSE:BBU)(TSX:BBU.UN), together with its institutional partners
(Brookfield), has exercised its option to acquire an additional 2%
ownership interest in Teekay Offshore’s general partner (Teekay
Offshore GP) from Teekay Corporation. As a result, Brookfield
now holds a 51% interest in Teekay Offshore GP and has the right to
appoint a majority of the members of its board of directors (the
Board). Teekay Corporation will continue to have the right to
appoint two members of the Board so long as it owns at least 10% of
the Partnership’s outstanding common units. Brookfield has informed
the Partnership that no changes to the Board composition are
planned at this time.
“We look forward to continuing the pursuit of
our near- and long-term objectives with the ongoing support of our
sponsors,” commented Ingvild Sæther, President and CEO of Teekay
Offshore Group Ltd. “Teekay Corporation’s strong operational
history in the marine and offshore space and Brookfield’s strategic
vision and reputation as a world class alternative asset manager
positions the Partnership for long term success.”
Brookfield’s exercise of its 2% option
represents a change of control event with respect to (i) the
Partnership’s 6.00% Senior Notes due 2019, which will entitle each
holder of such notes to require the Partnership to repurchase any
or all of the notes held by such holder for a price equal to 101%
of the principal amount of such repurchased notes plus any accrued
and unpaid interest, and (ii) the Partnership’s Norwegian
Kroner-denominated notes due 2019, which will entitle each holder
of such notes to require the Partnership to repurchase the notes
held by such holder for a price equal to 100% of the principal
amount of such repurchased notes plus accrued and unpaid
interest. The Partnership will deliver the requisite notices
to the holders of the Partnership’s 6.00% Senior Notes due 2019 and
Norwegian Kroner-denominated senior notes due 2019 regarding the
change of control pursuant to their indenture and bond agreement,
respectively.
About Teekay Offshore
Teekay Offshore Partners L.P. is a leading
international midstream services provider to the offshore oil
production industry, focused on the ownership and operation of
critical infrastructure assets 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 with
consolidated assets of approximately $5.7 billion, comprised of 62
offshore assets, including floating production, storage and
offloading (FPSO) units, shuttle tankers, floating storage and
offtake (FSO) units, long distance towing and offshore installation
vessels, a floating accommodation unit (FAU), and conventional
tankers. The majority of Teekay Offshore's fleet is employed on
medium-term, stable contracts.
Teekay Offshore's common units and preferred
units trade on the New York Stock Exchange under the symbols "TOO",
"TOO PR A", "TOO PR B" and “TOO PR E”, respectively.
About Brookfield Business Partners
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
approximately $285 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) 609-2963Website: www.teekay.com
Teekay Offshore Partners (NYSE:TOO)
Historical Stock Chart
From May 2024 to Jun 2024
Teekay Offshore Partners (NYSE:TOO)
Historical Stock Chart
From Jun 2023 to Jun 2024