Teekay Offshore plans to price cumulative redeemable preferred units

By Stephanie N. Rotondo

Phoenix, April 22 - Teekay Offshore Partners LP intends to sell up to $140 million of series A cumulative redeemable preferred stock units, the company said in an F3-ASR filing with the Securities and Exchange Commission on Monday.

BofA Merrill Lynch, Morgan Stanley & Co. LLC and UBS Securities LLC are the joint bookrunning managers. Joint lead managers are Credit Suisse Securities (USA) Inc. and RBC Capital Markets LLC.

DNB Markets, ScotiaBank and Santander are the co-managers.

Dividends will be payable on the 15th day of February, May, August and November, beginning Aug. 15. The preferred units become redeemable at par plus accrued dividends in 2018.

Teekay intends to list the securities on the New York Stock Exchange under the ticker symbol "TOOPA."

Proceeds will be used for general partnership purposes, including the funding of newbuilding installments, capital conversion projects and the acquisitions of vessels that Teekay Corp. has or might offer. Pending approval for such uses, the company may use the funds to pay down a portion of its revolving credit facilities.

The Hamilton, Bermuda-based company provides marine transportation, oil production and storage services to the offshore oil industry, focusing on the fast-growing, deep water offshore oil regions of the North Sea and Brazil.

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