Teekay Offshore Agrees USD 414 Mn Loan for Four Newbuildings

Teekay Offshore Partners has secured a new USD 414 million long-term debt facility to finance four LNG-fueled shuttle tanker newbuildings.

Upon delivery in 2019 and 2020, two of the Suezmax DP2 vessels will commence operations under the company’s master agreement with Norwegian energy company Equinor, while the remaining two vessels will join Teekay Offshore’s contract of affreightment (CoA) shuttle tanker portfolio in the North Sea.

The new facility is funded and guaranteed by both Canadian and Norwegian export credit agencies, and commercial banks and bears interest at LIBOR + 225 basis points with a tenor for up to 12 years from the delivery date of each vessel and a blended profile of 18 years.

“We are grateful for the continued strong support we receive from our growing bank group, as represented by our new USD 414 million debt facility,” Ingvild Sæther, President and CEO of Teekay Offshore Group Ltd, said.