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Saturday, October 22, 2016

Teekay Completes Norwegian Bond Issuance

October 19, 2016

Courtesy Teekay

Courtesy Teekay

Teekay LNG Partners L.P. announced that it has issued NOK 900 million in new senior unsecured bonds that mature in October 2021 in the Norwegian bond market. The new bond issuance, which was significantly oversubscribed, has an aggregate principal amount equivalent to approximately USD 110 million and all payments will be swapped into a US dollar fixed-rate coupon of approximately 7.75%.

In connection with the new bond issuance, the Partnership agreed to repurchase approximately NOK 275 million of Teekay (TK) LNG bond issue TKLNG01 (ISIN: NO 0010643257) maturing May 3, 2017 at a price of 101.50 of the principal amount of the repurchased bonds.

The net proceeds, which will be available to the Partnership upon settlement in late-October 2016, will be used for refinancing its 2017 NOK bonds and general partnership purposes, including funding of newbuilding installments. Teekay LNG will apply for listing of the new bonds on the Oslo Stock Exchange.

Danske Bank Markets, DNB Markets, Nordea Markets and Swedbank Norway acted as Joint Lead Managers of the above mentioned new bond issuance and repurchase.

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