Teekay Offshore Partners, a company providing tankers and FPSOs for the international oil and gas industry, has entered into binding agreements to issue $200 million of equity securities.
The securities will be issued through two private placements. According to Teekay, both equity issuances are expected to close on or prior to June 30, 2016.
The company said it would use the net proceeds from these offerings for general partnership purposes, including the funding of its existing newbuilding installments and capital conversion projects.
Peter Evensen, Teekay Offshore’s Chief Executive Officer, said: “With the pricing and placement of these offerings, we remain on track to complete all of our financing initiatives by June 30, 2016. Together with cash flow from operations, these financing initiatives, which include bank financings totaling $400 million, are expected to cover all of our medium-term liquidity requirements and fully finance Teekay Offshore’s $1.6 billion of committed growth projects scheduled to deliver through 2018, which we expect will contribute to further growth of our distributable cash flow.”