Teekay LNG Partners Heading to Norwegian Bond Market

Teekay Owner and operator of liquefied natural gas carriers Teekay LNG Partners has revealed plans to issue new five-year senior unsecured bonds in the Norwegian bond market as the company is looking to secure more funds. The shipowner said that the net proceeds from the bonds are expected to be used for refinancing NOK bonds maturing in May 2017 and general partnership purposes, including funding of newbuilding installments. Teekay LNG expects to apply for listing of the bonds on the Oslo Stock Exchange. In September, the company decided to sell 5 million of 9% Series A Preferred Units at a price of USD 25 per unit in an effort to raise fresh funds for debt repayments or funding installment payments on future newbuilding deliveries. Expected to close on October 5, 2016, the offering included a 30-day option which was granted to the underwriters to purchase up to an additional 750,000 shares.