Teekay LNG Partners has agreed to sell 2,800,000 common units, which represent limited partner interests, in a public offering.
Teekay LNG has granted the underwriters a 30-day option to purchase up to an additional 420,000 common units. The Partnership expects to use the proceeds to fund the equity portion of its first installment payment of approximately $95 million for six newbuilding liquefied natural gas carriers ordered by the Partnership’s 50/50 joint venture with China LNG Shipping for the Yamal LNG Project and to fund a portion of five M-type, Electronically Controlled, Gas Injection (or MEGI) newbuildings .
Pending application of the proceeds toward its MEGI newbuildings , the Partnership will temporarily reduce indebtedness under one of its revolving credit facilities which is available for general partnership purposes, Teekay LNG said in a statement.
Citigroup and Credit Suisse are acting as joint book-running managers in connection with the offering.
Press Release, July 18, 2014; Image: Teekay LNG