Teekay Offshore Secures USD 450 Mn Shuttle Tanker Fleet Refinancing

Teekay Offshore Partners has secured a new USD 450 million revolving credit facility for sixteen shuttle tankers.

The loan will be used to refinance the existing revolving credit facility dated September 8, 2017, currently fully drawn with outstanding amount of USD 445 million, and for general corporate purposes, Teekay Offshore explained.

It is funded by commercial banks and bears interest at LIBOR + 250 basis points with a five-year tenor and a profile of 8.4 years.

The company added that the facility is in accordance with its previously noted financing plans.

In April 2019, Teekay Offshore Partners secured USD 414 million long-term debt facility, funded and guaranteed by Canadian and Norwegian export credit agencies and commercial banks, to finance four new shuttle tankers under construction at South Korea’s Samsung Heavy Industries (SHI).

Following delivery in 2019 and 2020, two of the Suezmax DP2 vessels would start working for Norway’s energy company Equinor, while the remaining two units would join Teekay Offshore’s contract of affreightment (CoA) shuttle tanker portfolio in the North Sea.