Teekay Offshore Intends to Acquire Sevan Piranema FPSO
and Announces $170 Million Equity Private Placement
Hamilton, Bermuda – 11/10/11
The Piranema FPSO acquisition is part of Teekay's previously announced proposed transaction to acquire three FPSO units from Sevan. The remaining two FPSOs, the Sevan Hummingbird (which is currently operating under a short-term charter contract), and the Sevan Voyageur (which is currently undergoing an upgrade) initially would be acquired by Teekay. If acquired by Teekay, both FPSO units would be eligible to be acquired by Teekay Offshore upon commencement of charter contracts with a firm period of greater than three years in duration.
In addition, the Partnership announced today that it has agreed to sell approximately 7.1 million common units in a private placement to a group of institutional investors for proceeds of approximately $170 million (excluding its general partner's proportionate capital contribution), subject to the acquisition of the Piranema FPSO. The Partnership intends to use the proceeds from the sale of common units to partially finance the acquisition of the Piranema FPSO and to partially fund the Partnership's previously announced acquisition of four newbuilding shuttle tankers that are scheduled to deliver in mid-2013. The institutional investors participating in the private placement are funds managed by Kayne Anderson Capital Advisors L.P., Fiduciary Asset Management, Inc., ClearBridge Advisors, LLC, Salient Capital Advisors, LLC. and Tortoise Capital Advisors, LLC.
The Partnership expects that the proposed acquisition of the Piranema FPSO and the closing of the private equity placement would occur concurrently during the fourth quarter of 2011.
The proposed transactions between Sevan and Teekay and Teekay Offshore, including the Piranema FPSO acquisition, remain subject to negotiation of definitive documentation and customary closing conditions, including, among others, formal approval by Sevan's bondholders and shareholders, consent from charterers, and approvals by relevant regulatory authorities.
This news release does not constitute an offer to sell or a solicitation of an offer to buy the securities described herein, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, or any other securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.
About Teekay Offshore
Teekay Offshore Partners L.P., a publicly-traded master limited partnership formed by Teekay Corporation (NYSE: TK), is an international provider of marine transportation, oil production and storage services to the offshore oil industry. Teekay Offshore owns interests in 40 shuttle tankers (including four chartered-in vessels and four committed newbuildings), five floating storage and offtake (FSO) units, 10 conventional oil tankers, and two floating production, storage and offloading (FPSO) units. Teekay Offshore also has rights to participate in certain other FPSO and shuttle tanker opportunities provided by Teekay Corporation.
Teekay Offshore Partners' common units trade on the New York Stock Exchange under the symbol "TOO".
Teekay Offshore Partners L.P.