Teekay Announces $40 Mln Equity Private Placement

Teekay GP LLC., the general partner of Teekay LNG Partners L.P. (Teekay LNG), announced today that it has issued approximately 0.93 million common units in a private placement to an institutional investor for proceeds of approximately $40 million (excluding its general partner’s proportionate capital contribution).

The Partnership intends to use the proceeds from the sale of common units to partially fund its previously announced order of two fuel-efficient liquefied natural gas (LNG) carrier newbuildings ordered in July 2013, scheduled for delivery in 2016, and for general partnership purposes.

The two newbuilding LNG carriers are in addition to the two LNG carriers Teekay LNG ordered from DSME in December 2012, which have since secured time-charter employment commencing upon delivery. These newbuildings will be constructed with the M-type, Electronically Controlled, Gas Injection (MEGI) twin engines, which are expected to be significantly more fuel-efficient and have lower emission levels than other engines currently being utilized in LNG shipping.

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Press Release, July 31, 2013