Teekay and Teekay Offshore announced that they have completed and closed their previously announced financing initiatives.
“I am pleased to announce the completion of Teekay’s financing initiatives, which include $350 million in bank financings and $100 million in equity capital,” commented Peter Evensen, Teekay Corporation’s President and Chief Executive Officer. “With the completion of these initiatives, we have significantly reduced our financial leverage and enhanced our liquidity position, which we believe strengthens the entire Teekay Group of companies. In addition, this week we reached an agreement to sell Teekay’s remaining conventional tanker, the Shoshone Spirit VLCC, which is expected to further reduce our financial leverage.”
Mr. Evensen continued, “Teekay Offshore has also completed its financing initiatives, which include $400 million in bank financings, $200 million of equity capital, and the deferral of certain bond maturities. These financing initiatives, together with cash flow from operations and previously secured debt facilities, are expected to cover all of its medium-term liquidity requirements and fully finance Teekay Offshore’s $1.6 billion of committed growth projects scheduled to deliver through 2018.”
Mr. Evensen added, “While not part of these financing initiatives, Teekay LNG Partners has continued to make progress in securing the required financing for its committed growth projects which deliver through 2020 and anticipates completing the majority of these financings by the end of the year.”
ABN AMRO, Citigroup, Credit Suisse, DNB Bank ASA, ING Capital LLC, Nordea, and Swedbank acted as lead banks for Teekay’s and Teekay Offshore’s bank financing initiatives.
DNB Markets and RBC Capital Markets acted as lead placement agents for Teekay’s $100 million equity initiative and Credit Suisse also acted as placement agent.