Teekay Offshore Partners plans equity offering to fund new vessels

Teekay Offshore Partners plans equity offering to fund new vessels

London: Teekay Offshore Partners (TOP) is planning a public offering of Series B Cumulative Redeemable Preferred Units, which represent limited partner interests in the company.

The Bermuda-registered partnership will grant its underwriters a 30-day option period in which to purchase additional Series B preferred units.

TOP will apply to list the rest of the units on the New York Stock Exchange.

The net proceeds from the offering could be used in part to fund the limited partnership’s purchase of the Petrojarl Knarr FPSO unit, TOP says, plus other vessels from Teekay Corporation.

The Petrojarl Knarr (pictured) suffered a small fire in March at its anchorage in the Knarr oilfield in the North Sea, 120 km from the Norwegian coast. The unit is currently chartered by BG Group and hit first oil last month.

The rest of the proceeds will be used for general partnership purposes, including the funding of newbuilding installments and capital conversion projects, TOP said today.

TOP has four long-haul towing and anchor handling tug vessels under construction, two floating accommodation vessel newbuildings, plus commitments to two FPSO conversion/upgrade projects.

Holly Birkett

Holly is Splash's Online Editor and correspondent for the UK and Mediterranean. She has been a maritime journalist since 2010, and has written for and edited several trade publications. She is currently studying for membership of the Institute of Chartered Shipbrokers. In 2013, Holly won the Seahorse Club's Social Media Journalist of the Year award. She is currently based in London.

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