Teekay Offshore Partners is looking to raise up to USD 115 million through a pubic offering of 4.6 million 8.875% Series E preferred units.
The company has priced its units, representing limited partner interests, at USD 25 per unit. The offering is expected to close on January 23, 2018.
The Partnership expects to use the net proceeds from the public offering for general partnership purposes, which may include funding installment payments on newbuildings and conversion projects and debt repayments.
Teekay Offshore has granted the underwriters a 30-day option to purchase up to an additional 690,000 Series E preferred units.
Distributions will be payable on the Series E preferred units from and including the original issue date to, but excluding February 15, 2025 at a fixed rate equal to 8.875% per annum of the stated liquidation preference of USD 25.00 per unit; and from and including February 15, 2025, at a floating rate equal to three-month LIBOR plus a spread of 640.7 basis points.
The Partnership expects to use the net proceeds from the public offering for general partnership purposes, which may include funding installment payments on newbuildings and conversion projects and debt repayments.
Teekay Offshore intends to apply to have the Series E Preferred Units listed on the New York Stock Exchange.