Teekay Offshore Partners has announced that it has entered into an equity distribution agreement with Citigroup Global Markets.
Under the agreement, the partnership may sell from time to time through Citigroup, common units representing limited partner interests of up to $100m. Citigroup, when it is acting as the Partnership’s agent, will be entitled to compensation of up to 2% of the gross sales price of the units sold through the group.
Teekay Offshore Partners said that it intends to use the net proceeds from the sales for general partnership purposes, which may include paying or refinancing all or a portion of the partnership’s outstanding indebtedness and funding working capital, capital expenditures or acquisitions.
