Teekay LNG Raises USD 100 Mn from Bond Issuance

Owner and operator of gas carriers Teekay LNG Partners L.P. has collected around USD 100 million from the issuance of NOK 850 million of bonds.

The senior unsecured bonds mature in August 2023 in the Norwegian bond market.

“Teekay LNG expects to close the bond offering on August 29, 2018, subject to customary closing conditions,” the company said.

The company intends to use the net proceeds from the bonds for refinancing of existing bonds and/or general partnership purposes.

Teekay LNG will apply for listing of the new bonds on the Oslo Stock Exchange.

The company has been in refinancing mode for a while now having refinanced an outstanding USD 105 million debt facility secured by the Woodside Donaldson LNG carrier via Teekay LNG-Marubeni joint venture in May 2018.

In June the company refinanced USD 57 million debt secured by the Polar Spirit and Arctic Spirit LNG carriers with a new USD 40 million loan, and USD 125 million loan secured by Madrid Spirit LNG with a USD 117 million debt facility maturing in 2024.

Since the beginning of 2018, the company has taken delivery of six LNG carriers, all on long-term charters.