Teekay Offshore to offer 7M units to the public

Date : 06/11/2008 @ 4:35PM
Source : TFN
Stock : Teekay Offshore Part (TOO)
Quote : 9.72  3.14 (47.72%) @ 5:04PM
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Teekay Offshore to offer 7M units to the public

        SAN FRANCISCO (Thomson Financial) - Teekay Offshore Partners L.P. said late
Wednesday it plans to offer 7 million common units in a public offering, and
expects to grant the underwriters a 30-day option to purchase an additional 1.05
million units to cover any over-allotments.
    In addition, Teekay Corp. has agreed to buy directly from Teekay Offshore,
in a private placement, $65 million of common units at the public offering
price.
    Teekay Offshore expects to use the net proceeds from offerings to purchase
an additional 25% interest in Teekay Offshore Operating L.P. (OPCO) from Teekay
for $205 million. 
    Teekay Offshore will use any remaining net proceeds to repay amounts it
borrowed from OPCO to purchase three vessels in 2007.
    Shares of Bermuda-based Teekay Offshore, a provider of marine transportation
and storage services to the offshore oil industry, closed at $21.07.
Gabriel Madway
gm

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