Teekay Offshore to retire $200 million bonds via exchange or with cash

By Angela McDaniels

Tacoma, Wash., Aug. 1 – Teekay Offshore Partners LP expects to retire about $200 million of Norwegian krone-denominated bonds due to mature in late-2018 and early 2019, according to a 6-K filing with the Securities and Exchange Commission.

The bonds will be retired either by exchanging them for new dollar-denominated five-year bonds or with cash proceeds from the issuance of new dollar-denominated five-year bonds.

Teekay plans to separate its shuttle tanker business into a wholly owned subsidiary, which will be the issuer of the new bonds.

The completion of the shuttle tanker reorganization is a condition to a series of investment transactions under which Teekay will sell common units and warrants to Brookfield TK TOLP for $610 million and to subsidiary Teekay Holdings Ltd. for $30 million. Teekay Holdings will then sell 49% of the limited liability company interests in Teekay Offshore GP LLC to Brookfield TK TOGP LP, an affiliate of Brookfield TOLP, for $4 million and an option to acquire an additional 2% of the general partner interest in exchange for 1 million Teekay warrants.

The investment transactions are expected to close during the quarter ending Sept. 30.

Teekay is a Hamilton, Bermuda-based provider of marine transportation and storage services to the offshore oil industry.

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