Teekay LNG seeks cash to fund Yamal newbuildings

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