Teekay LNG agrees to sell common units

Teekay LNG Partners L.P. has agreed to sell 2 800 000 common units, which represent limited partner interests, in a public offering. Teekay LNG has also granted the underwriters a 30-day option to purchase up to an additional 420 000 common units

Teekay LNG plans to use the proceeds from the sale to fund the equity portion of its first installment payment of approximately US$ 95 million for six newbuilding LNG carriers ordered by the Teekay LNG’s 50/50 joint venture with China LNG Shipping (Holdings) Ltd for the Yamal LNG Project. The funds will also be used for a portion of five M-type, Electronically Controlled, Gas Injection (MEGI) newbuildings.

Pending application of the proceeds toward its MEGI newbuildings, the Partnership will temporarily reduce indebtedness under one of its revolving credit facilities, which is available for general partnership purposes.

Adapted from press release by Callum O'Reilly

Read the article online at: https://www.lngindustry.com/lng-shipping/18072014/teekay-lng-agrees-to-sell-common-units-1013/