Teekay Announces Public Offering
Teekay LNG Partners L.P. has announced that it has agreed to sell 2,800,000 common units, which represent limited partner interests, in a public offering.
Teekay LNG has granted the underwriters a 30-day option to purchase up to an additional 420,000 common units. The Partnership expects to use the proceeds to fund the equity portion of its first installment payment of approximately $95 million for six newbuilding liquefied natural gas (LNGLF) (LNG) carriers ordered by the Partnership's 50/50 joint venture with China LNG Shipping (Holdings) Limited for the Yamal LNG Project and to fund a portion of five M-type, Electronically Controlled, Gas Injection (or MEGI) newbuildings. Pending application of the proceeds toward its MEGI newbuildings, the Partnership will temporarily reduce indebtedness under one of its revolving credit facilities which is available for general partnership purposes.
Teekay LNG is a publicly-traded master limited partnership formed by Teekay Corporation (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 primarily under long-term, fixed-rate time-charter contracts with major energy and utility companies through its fleet, excluding newbuildings, of 29 LNG carriers, 20 LPG carriers, including four chartered- in LPG carriers, 8 Suezmax-class crude oil tankers and one Handymax product tanker. The Partnership's interests in these vessels, excluding the four chartered-in LPG carriers, range from 33 to 100 percent.