Teekay Offshore accepts early tenders for $222.03 million of 6% notes

By Marisa Wong

Morgantown, W.Va., July 3 – Teekay Offshore Partners LP and wholly owned subsidiary Teekay Finance Corp. announced that holders had tendered $222,029,000, or 74.01%, of their $300 million outstanding 6% senior notes due 2019 as of 5 p.m. ET on July 2, the early tender and consent date.

The issuers also announced that they received the necessary consents to amend the notes and executed a supplemental indenture on Tuesday to eliminate substantially all of the restrictive covenants and some events of default and related provisions from the indenture governing the notes. The proposed amendments required consents from holders of a majority of the outstanding principal amount of notes.

On Tuesday the issuers accepted the early tendered notes for a total of $229,911,030, which represents the total consideration of $1,025 per $1,000 principal amount and accrued interest. The total consideration includes an early tender premium of $30 per $1,000 principal amount of notes tendered by the early deadline.

Holders tendering after the early deadline will receive the base price of $995 per $1,000 of notes. The issuers will also pay accrued interest up to but excluding the settlement date, which will be July 11 for any remaining tenders.

The offer began on June 13 and will continue until 11:59 p.m. ET on July 10.

Tendered notes may no longer be withdrawn.

The offer was contingent upon Teekay closing a concurrent bond offering, but it is not conditioned on any minimum amount of notes being tendered. The company said it closed its offering of 8½% senior notes due 2023 on Tuesday.

Global Bondholder Services Corp. (866 470-3900 or 212 430-3774) is the information agent. The dealer manager is Citigroup Global Markets Inc. (800 558-3745 or 212 723-6106).

Teekay Offshore Partners is a Hamilton, Bermuda-based provider of marine transportation, oil production, storage, long-distance towing and off-shore installation maintenance and safety services to the oil industry.

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