Teekay and Brookfield announce closing of strategic transaction
Teekay Corporation and Teekay Offshore Partners L.P. have completed their previously announced comprehensive transaction with Brookfield Business Partners L.P. , together with its institutional partners (collectively Brookfield), the company said in its press release.
“With this comprehensive transaction now completed, Teekay looks forward to working with Brookfield as co-sponsors of Teekay Offshore to support the Partnership’s continued growth,” commented Kenneth Hvid, Teekay’s President and CEO. “This transaction has significantly strengthened Teekay Offshore’s capital structure and together with management and the Board of Directors, we are now in a position to focus on developing the next phase of the Partnership’s strategy.”
“With our existing in-progress growth projects now fully financed and nearing completion, our top priority is to deliver these projects into operation, which are expected to contribute approximately an incremental $200 million of run-rate annual cash flow from vessel operations,” commented Ingvild Sæther, President and CEO of Teekay Offshore Group Ltd.
About Teekay
Teekay Corporation operates in the marine midstream space through its ownership of the general partner and a portion of the outstanding limited partner interests in Teekay LNG Partners L.P. and an interest in the general partner and a portion of the outstanding limited partner interests in Teekay Offshore Partners L.P.. The general partners own all of the outstanding incentive distribution rights of these entities. In addition, Teekay has a controlling ownership interest in Teekay Tankers Ltd. and directly owns a fleet of vessels. The combined Teekay entities manage and operate consolidated assets of approximately $13 billion, comprised of approximately 220 liquefied gas, offshore, and conventional tanker assets. With offices in 14 countries and approximately 8,000 seagoing and shore-based employees, Teekay provides a comprehensive set of marine services to the world\’s leading oil and gas companies.
About Teekay Offshore
Teekay Offshore Partners L.P. is an international provider of marine transportation, oil production, storage, long-distance towing and offshore installation and maintenance and safety services to the oil industry, primarily focusing on oil production-related activities of its customers and operating in offshore oil regions of the North Sea, Brazil and the East Coast of Canada. Teekay Offshore is structured as a publicly-traded master limited partnership (MLP) with consolidated assets of approximately $5.6 billion, comprised of 62 offshore assets, including shuttle tankers, floating production, storage and offloading (FPSO) units, floating storage and offtake (FSO) units, units for maintenance and safety (UMS), long-distance towing and offshore installation vessels and conventional tankers. The majority of Teekay Offshore’s fleet is employed on medium-term, stable contracts.
Teekay Offshore\’s common units and the Series A and B preferred units trade on the New York Stock Exchange under the symbol \”TOO\”, “TOO PR A”, and “TOO PR B”, respectively.
About Brookfield Business Partners LP
Brookfield Business Partners is a business services and industrial company focused on owning and operating high-quality businesses that benefit from barriers to entry and/or low production costs. Brookfield Business Partners is listed on the New York and Toronto stock exchanges.