NEW YORK (AP) - Bermuda-based Teekay Offshore Partners LP, which provides
marine transportation and storage services to petroleum companies, said Friday
it priced a public offering of 7 million common units at $20 per unit -- its
closing price Thursday.
Teekay Offshore, a limited partnership formed by Teekay Corp., also granted
underwriters a 30-day option to buy nearly 1.1 million units for overallotments.
The offering will close Wednesday.
In addition, Teekay Corp. will buy nearly 3.3 million common units from
Teekay Offshore for $20 per unit. After that purchase, Teekay Corp. will own an
approximately 50 percent interest in Teekay Offshore, the company said.
Teekay Offshore said it will use proceeds to buy another 25 percent stake in
Teekay Offshore Operating LP, a Marshall Islands-based limited partnership, from
Teekay Corp. for $205 million.
Teekay Offshore said it will then use the remaining proceeds to repay debt
incurred to buy three vessels last year.
Joint book running managers are Citi, Merrill Lynch & Co. and Lehman
Brothers. Co-managers are Morgan Stanley, JPMorgan, and Raymond James.
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