Teekay gives final results of tender offer for 5% convertibles due 2023

By Rebecca Melvin

Concord, N.H., Feb. 9 – Teekay Corp. announced the final results of its Jan. 10 cash tender offer to purchase any and all of its $112,184,000 outstanding 5% convertible senior notes due 2023 (Cusip: 87900YAE3), according to a press release.

As of 12 a.m. ET on Feb. 9, $85 million of notes, representing about 75.8% of the total principal amount outstanding, were validly tendered and not validly withdrawn.

Teekay has accepted for purchase all of the notes that were tendered and expects to pay about $87 million for the purchase of the notes including accrued and unpaid interest on the Feb. 10 settlement date.

Teekay offered a consideration of $1,020 per $1,000 principal amount plus accrued interest to but excluding the settlement date.

After settlement, about $27.3 million aggregate principal amount of notes will remain outstanding.

As previously reported, the company said the tender offer is part of its broader corporate strategy to strengthen its balance sheet, reduce its cost of capital, increase its financial flexibility in considering future strategic investment opportunities in the shipping sector and facilitate its participation in the global energy transition.

The company will fund purchases of notes tendered in the tender offer with available cash and proceeds from the acquisition of subsidiary Teekay LNG Partners, LP by an affiliate of Stonepeak, which closed on Jan. 13. Closing of the merger was a condition to the closing of the tender offer.

The tender offer was not, however, conditioned on any minimum principal amount being tendered.

The information agent for the offer is Georgeson LLC (866 767-8867).

The dealer manager is Morgan Stanley & Co. LLC (855 483-0952 for banks and brokers).

Teekay is a Hamilton, Bermuda-based provider of international crude oil and gas marine transportation services.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.