Teekay Shuttle Tankers, a subsidiary of Teekay Offshore Partners (Teekay Offshore or the Partnership), has completed an offering of 250 mill. $ of new senior unsecured bonds in the Norwegian bond market. They will have a coupon of 7.125 % and mature in August 2022.
In connection [ds_preview]with the bond issuance, and Teekay Shuttle Tankers‘ acquisition of the shuttle tanker business from the Partnership, Teekay Offshore will repurchase approximately 199 mill. NOK of its TOP02 bonds (ISIN NO 0010635329) maturing in November 2018 at a price of 101 % of par value and approximately 512 mill. NOK of its TOP04 bonds (ISIN NO 0010670128) maturing in December 2018 at a price of 101 % of par value.
On or around the date of disbursement of the funds from the new bond issuance, the Partnership intends to call all remaining outstanding TOP02 and TOP04 bonds at the time prevailing call premium. The new bond issuance, repurchase and discharge of TOP02 and TOP04 bonds are contingent on certain conditions precedent including those related to the previously announced strategic partnership with Brookfield Business Partners LP and its institutional partners (Brookfield). DNB Markets acted as Global Coordinator and Danske Bank, Nordea and Swedbank as Joint Lead Managers of the new bond issuance.
Teekay Offshore Partners 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 The main focus is on oil production-related activities of its customers and operatings in offshore oil regions of the North Sea, Brazil and the East Coast of Canada.
The company is structured as a publicly-traded master limited partnership (MLP) with consolidated assets of approximately 5.6 bill. $, comprised of 62 offshore assets, including floating production, storage and offloading (FPSO) units, shuttle tankers, 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.
