Teekay Offshore to draw on revolver for acquisition financing

By Sara Rosenberg

New York, June 6 - Teekay Offshore Operating LP plans to use borrowings under its revolving credit facility to help fund Teekay Offshore Partners LP's purchase of an additional 25% interest in the company and the acquisition of two 2008-built Aframax lightering tankers, according to a news release.

The 25% interest and the tankers are being bought from Teekay Corp. for a total of $311 million.

Other acquisition financing will come from existing cash balances and the issuance of additional equity, potentially including an issuance of equity to Teekay Corp.

Upon the completion of the transaction, Teekay Offshore Partners will own 51% of Teekay Offshore Operating, including all general partner interests, and Teekay Corp. will own the remaining 49%.

Both transactions, which are subject to standard closing conditions and financing, are expected to be completed during June.

Teekay Offshore Partners is a Nassau, Bahamas-based provider of marine transportation and storage services to the offshore oil industry.

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