Teekay LNG Partners L.P. (Teekay LNG or the Partnership) (NYSE:TGP) announces that it has issued NOK 900 million in new senior unsecured bonds
that mature in October 2021 in the Norwegian bond market. The new bond issuance, which was significantly oversubscribed, has an aggregate principal amount equivalent to approximately USD 110 million and all payments will be swapped into a US dollar fixed-rate coupon of approximately 7.75%. In connection with the new bond issuance, the Partnership agreed to repurchase approximately NOK 275 million of Teekay LNG bond issue TKLNG01 (ISIN: NO 0010643257) maturing May 3, 2017 at a price of 101.50 of the principal amount of the repurchased bonds.
The net proceeds, which will be available to the Partnership upon settlement in late-October 2016, will be used for refinancing its 2017 NOK bonds and general partnership purposes, including funding of newbuilding installments. Teekay LNG will apply for listing of the new bonds on the Oslo Stock Exchange.
Danske Bank Markets, DNB Markets, Nordea Markets and Swedbank Norway acted as Joint Lead Managers of the above mentioned new bond issuance and repurchase.
This press release is neither an offer to sell nor a solicitation of an offer to buy any of the bonds or any other security of Teekay LNG. The bonds have not been and will not be registered under the Securities Act or any state securities laws. Unless so registered, the bonds may not be offered or sold in the United States except pursuant to an exemption from the registration requirements of the Securities Act and applicable state securities laws.
The statements in this press release that are not historical facts may be forward-looking statements. These forward-looking statements involve risks and uncertainties that could cause the outcome to be materially different. These risks and uncertainties include, but are not limited to, those discussed in Teekay LNG’s public filings with the U.S. Securities and Exchange Commission. Teekay LNG undertakes no obligation to revise or update any forward looking statements, unless required to do so under the securities laws.