Teekay Offshore begins one-month tender offers for 6% notes, floaters

By Susanna Moon

Chicago, June 13 – Teekay Offshore Partners LP and wholly owned subsidiary Teekay Finance Corp. have begun a cash tender offer and consent solicitation for the 6% senior notes due 2019.

The tender offer will continue until 11:59 p.m. ET on July 10.

Holders who tender their notes and give their consents before the early deadline of 5 p.m. ET on July 2 will receive the total purchase price of $1,025 for each $1,000 principal amount, which includes an early tender premium of $30 per $1,000 principal amount.

Those who tender afterward will receive the base price of $995 per $1,000 of notes.

The issuer also will pay accrued interest up to but excluding the settlement date, which will be July 3 for early tendered notes and July 11 for any remaining tenders.

Holders tendering their notes will be deemed to have given consents to amend the notes to eliminate substantially all of the restrictive covenants and certain events of default and related provisions, according to a company announcement.

Tendered notes may not be withdrawn after the early deadline.

The offer is contingent upon Teekay closing a concurrent bond offering announced Wednesday, but it is not conditioned on any minimum amount of notes being tendered.

Global Bondholder Services Corp. (866 470-3900 or 212 430-3774) is the information agent. The dealer manager is Citigroup Global Markets Inc. (800 558-3745 or 212 723-6106).

Buyback offer

In a separate announcement, Teekay Offshore said it is holding a buyback offer for its NOK 1 billion TOP05 senior floating-rate notes issue 2014/2019.

The purchase price is NOK 1.02 million or 102% of par for notes tendered by the early deadline of 10 a.m. ET on July 2 and NOK 990,000 or 99% of par for notes tendered afterward.

The tender offer will remain open until 10 a.m. ET on July 10.

Holders also will receive accrued interest up to but excluding the settlement date.

The offer is being made along with the company’s planned $500 million private offering of senior notes in the United States and is contingent on the company obtaining enough proceeds from the issue to fund the tender.

For information, e-mail Bond.syndicate@dnb.no, call +47 24 16 90 30 or log onto stamdata.no.

Teekay Offshore Partners is a Hamilton, Bermuda-based provider of marine transportation, oil production, storage, long-distance towing and off-shore installation maintenance and safety services to the oil industry.

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