Teekay LNG Partners L.P. announced that it has priced its follow-on public offering of 5,500,000 common units, which represent limited partner interests, at $33.40 per unit.
Teekay LNG has granted the underwriters a 30-day option to purchase up to an additional 825,000 units.
The Partnership intends to use a portion of the net proceeds from the public offering to fund its share of the equity purchase price for ownership interests in eight liquefied natural gas (LNG) carriers that the joint venture between the Partnership and Marubeni Corporation plans to acquire from A.P. Moller-Maersk A/S, if and as such payments become due.
All interim and remaining net proceeds from the offering will be used to repay amounts outstanding on one of the Partnership’s revolving credit facilities.
This offering is not contingent on the closing of the Acquisition, and the Acquisition is not contingent on the closing of this offering.
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Source: Teekay LNG, November 3, 2011