Teekay LNG Partners raising cash for future newbuilds

Teekay LNG Partners on Wednesday said it plans to offer Series A cumulative redeemable perpetual preferred units in a public offering.

Teekay LNG expects to grant the underwriters a 30-day option to purchase up to an additional 750,000 Series A preferred units, the company said in a statement.

The Partnership expects to use the net proceeds from the public offering for general partnership purposes, which may include debt repayments or funding installment payments on future newbuilding deliveries.

The public offering of 5,000,000, 9 percent Series A preferred units has been priced at US$25 per unit.

Distributions will be payable on the Series A preferred units at a rate of 9.0 percent per annum of the stated liquidation preference of $25.

The Partnership added it expects to close the offering on October 5.

LNG World News Staff