Teekay Offshore to sell $65 million of units in private placement

By Devika Patel

Knoxville, Tenn., June 11 - Teekay Offshore Partners LP will sell $65 million of its common units to Teekay Corp., according to a prospectus supplement filed Wednesday with the Securities and Exchange Commission.

The prospectus supplement was for an offering of 7 million common units, with a greenshoe of up to 1.05 million additional common units.

In the private placement, the company will sell the common units at the public offering price.

The partnership expects to use the net proceeds to purchase an additional 25% interest in Teekay Offshore Operating LP for $205 million. The partnership will use any remaining proceeds to partially repay amounts it borrowed from Teekay Offshore Operating to purchase three vessels in 2007.

Based in Hamilton, Bermuda, Teekay Offshore Partners is a provider of marine transportation and storage services to the offshore oil industry.

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