Teekay Offshore Partners eyes tapping U.S. and Norwegian bond markets

By Angela McDaniels

Tacoma, Wash., June 17 – Teekay Offshore Partners LP plans to issue bonds in the U.S. and Norwegian bond markets to refinance bonds scheduled to mature in 2018 and 2019, according to an investor presentation.

The company’s target issue size for the dollar bonds is $250 million or more, and it will be seeking third-party credit ratings as the energy markets improve.

Teekay Offshore expects its net leverage to decline to around 3.2 times by the end of 2018 and anticipates further deleveraging from asset sales.

The company’s goal is to reduce its net secured debt to $1.7 billion by the end of 2018 from $2.4 billion at the end of the 2016 first quarter and its unsecured debt to $800 million from $1 billion.

Refinancing with banks remains an option, according to the presentation.

The Hamilton, Bermuda-based company provides marine transportation, oil production, storage, towage and maintenance and safety services to the oil industry.

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