March 24, 2009
Teekay LNG plans public offering
Teekay LNG Partners L.P. (NYSE:TGP) announced today that it plans to offer 4,000,000 common units representing limited partner interests in a public offering. Teekay LNG expects to grant the underwriters a 30-day option to purchase an additional 600,000 common units to cover over-allotments, if any. The partnership expects to use the net proceeds from the public offering to repay amounts outstanding on one of its revolving credit facilities. The partnership may reborrow the amounts it repays on the facility.
Teekay LNG Partners L.P common units were trading at $17.25 at market close today, after opening at $19.22.
Teekay LNG Partners L.P. is a publicly-traded master limited partnership formed by Teekay Corporation (NYSE:TK) as part of its strategy to expand its operations in the liquefied natural gas (LNG) and liquefied petroleum gas (LPG) shipping sectors. Teekay LNG provides LNG, LPG and crude oil marine transportation services under long-term, fixed-rate time charter contracts with major energy and utility companies through its fleet of thirteen LNG carriers, one LPG carrier and eight Suezmax class crude oil tankers.
The joint book running managers for this offering are Citi, Morgan Stanley and UBS Investment Bank.