By Paul A. Harris
Portland, Ore., May 22 - Teekay Offshore Partners LP priced a $275 million issue of five-year senior notes at par to yield 6% on Thursday, according to a market source.
The deal came into the market at benchmark size and was talked to price with a 6% coupon.
Sterne Agee & Leach Inc. was the physical bookrunner. DNB Markets Inc. was the joint bookrunner.
Proceeds from the public offering will be used for general partnership purposes, including funding new building installments, capital conversion projects and future acquisitions of vessels from Teekay Corp. or third parties. Pending the application of funds for these purposes, the partnership expects to repay a portion of outstanding debt under some of its credit facilities.
The company said it intends to apply to have the notes listed on the New York Stock Exchange.
Teekay is a Hamilton, Bermuda-based provider of marine transportation, oil production and storage services to the offshore oil industry.
| Issuer: | Teekay Offshore Partners LP
|
| Amount: | $275 million
|
| Maturity: | July 30, 2019
|
| Securities: | Senior notes
|
| Physical bookrunner: | Sterne Agee & Leach Inc.
|
| Joint bookrunner: | DNB Markets Inc.
|
| Co-managers: | ABN Amro, Raymond James, Scotiabank
|
| Coupon: | 6%
|
| Price: | Par
|
| Yield: | 6%
|
| Spread: | 445 bps
|
| Call protection: | Non-callable
|
| Trade date: | May 22
|
| Settlement date: | May 30
|
| Distribution: | SEC registered
|
| Price talk: | 6% coupon
|
| Marketing: | Roadshow
|
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