Teekay Shuttle Tankers to raise funds

Oct 04 2019

Teekay Shuttle Tankers has recruited Danske Bank, DNB Markets, Nordea and Skandinaviska Enskilda Banken to arrange a series of fixed income investor meetings in Bergen, Helsinki, Stockholm and Oslo.

The first one was held on Wednesday of this week.

As a result, subject to market conditions, a senior unsecured green bond issue of up to $150 mill could follow.

Teekay has secured a second opinion on the green bond framework from Oslo-based climate specialist CICERO, which gave it the okay.

The proceeds will be used to partially to fund the E-Shuttle newbuilding series currently under construction.

Also in the Group, Teekay Offshore Partners has agreed a merger plan with Brookfield Business Partners, and certain of its affiliates and institutional partners.

Under this agreement, the Brookfield Consortium will acquire, under a merger, all of the outstanding publicly held common units representing limited partner interests of the Partnership not already held in exchange for $1.55 in cash per common unit.

The cash consideration represents an increase of $0.34 (28.1%) per common unit when compared to the closing price per common unit on 16th May, 2019, immediately prior to Brookfield’s initial offer and a premium of $0.39 (33.6%) to the $1.16 closing price per common unit on 30th September, 2019.

As an alternative to receiving the cash consideration, each unaffiliated unitholder will have the option to elect to receive one newly designated unlisted Class A common unit of the Partnership per common unit.

The merger is expected to close in the fourth quarter of 2019 and is subject to satisfaction of certain customary conditions. Upon the closing of the merger, the common units will cease to be publicly traded. The Partnership will continue to file certain reports with the US Securities and Exchange Commission (SEC), following the closing of the merger.

Evercore Group acted as financial advisor and Potter Anderson & Corroon acted as legal counsel to the conflicts committee.


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