Teekay Corporation Announces Completion of Financing Initiatives

HAMILTON, BERMUDA--(Marketwired - June 29, 2016) - Teekay Corporation (Teekay) (NYSE:TK) and Teekay Offshore Partners L.P. (Teekay Offshore or the Partnership) (NYSE:TOO) announced today that they have completed and closed their previously announced financing initiatives.

"I am pleased to announce the completion of Teekay's financing initiatives, which include $350 million in bank financings and $100 million in equity capital," commented Peter Evensen, Teekay Corporation's President and Chief Executive Officer. "With the completion of these initiatives, we have significantly reduced our financial leverage and enhanced our liquidity position, which we believe strengthens the entire Teekay Group of companies. In addition, this week we reached an agreement to sell Teekay's remaining conventional tanker, the Shoshone Spirit VLCC, which is expected to further reduce our financial leverage."

Mr. Evensen continued, "Teekay Offshore has also completed its financing initiatives, which include $400 million in bank financings, $200 million of equity capital, and the deferral of certain bond maturities. These financing initiatives, together with cash flow from operations and previously secured debt facilities, are expected to cover all of its medium-term liquidity requirements and fully finance Teekay Offshore's $1.6 billion of committed growth projects scheduled to deliver through 2018."

Mr. Evensen added, "While not part of these financing initiatives, Teekay LNG Partners has continued to make progress in securing the required financing for its committed growth projects which deliver through 2020 and anticipates completing the majority of these financings by the end of the year."

ABN AMRO, Citigroup, Credit Suisse, DNB Bank ASA, ING Capital LLC, Nordea, and Swedbank acted as lead banks for Teekay's and Teekay Offshore's bank financing initiatives.

DNB Markets and RBC Capital Markets acted as lead placement agents for Teekay's $100 million equity initiative and Credit Suisse also acted as placement agent.

About Teekay

Teekay Corporation operates in the marine midstream space through its ownership of the general partners and a portion of the outstanding limited partner interests in Teekay LNG Partners L.P. (NYSE:TGP) and Teekay Offshore Partners L.P. (NYSE:TOO). The general partners own all of the outstanding incentive distribution rights of these entities. In addition, Teekay has a controlling ownership interest in Teekay Tankers Ltd. (NYSE:TNK) and directly owns a fleet of vessels. The combined Teekay entities manage and operate consolidated assets of approximately $13 billion, comprised of approximately 210 liquefied gas, offshore, and conventional tanker assets. With offices in 15 countries and approximately 7,700 seagoing and shore-based employees, Teekay provides a comprehensive set of marine services to the world's leading oil and gas companies.

Teekay's common stock is listed on the New York Stock Exchange where it trades under the symbol "TK".

About Teekay Offshore

Teekay Offshore Partners L.P. is an international provider of marine transportation, oil production, storage, long-distance towing and offshore installation and maintenance and safety services to the oil industry, primarily focusing on oil production-related activities of its customers and operating in offshore oil regions of the North Sea, Brazil and the East Coast of Canada. Teekay Offshore is structured as a publicly-traded master limited partnership (MLP) with consolidated assets of approximately $6 billion, comprised of 65 offshore assets, including shuttle tankers, floating production, storage and offloading (FPSO) units, floating storage and offtake (FSO) units, units for maintenance and safety (UMS), long-distance towing and offshore installation vessels and conventional tankers. The majority of Teekay Offshore's fleet is employed on medium-term, stable contracts.

Teekay Offshore's common units trade on the New York Stock Exchange under the symbol "TOO".

Forward Looking Statements

This release contains forward-looking statements (as defined in Section 21E of the Securities Exchange Act of 1934, as amended) which reflect management's current views with respect to certain future events and performance, including statements regarding: the results and benefits of the financing initiatives, including Teekay Offshore's ability to meet medium-term liquidity requirements and finance its committed growth projects; the sale of the Shoshone Spirit VLCC, including the impact of the sale on Teekay's balance sheet; and the timing and certainty of securing financing for Teekay LNG Partners' committed growth projects delivering through 2020. The following factors are among those that could cause actual results to differ materially from the forward-looking statements, which involve risks and uncertainties, and that should be considered in evaluating any such statement: failure to achieve the expected benefits of such financing initiatives; changes in production of, or demand for oil, petroleum products, LNG and LPG, either generally or in particular regions; greater or less than anticipated levels of newbuilding orders or greater or less than anticipated rates of vessel scrapping; changes in trading patterns significantly affecting overall vessel tonnage requirements; changes in applicable industry laws and regulations and the timing of implementation of new laws and regulations; changes in the typical seasonal variations in tanker charter rates; changes in the offshore production of oil or demand for shuttle tankers, FSOs, FPSOs, UMS, and towage vessels; changes in oil production and the impact on the Company's tankers and offshore units; fluctuations in global oil prices; trends in prevailing charter rates for the Company's vessels and offshore unit contract renewals; the potential for early termination of long-term contracts and inability of the Company to renew or replace long-term contracts; the inability of charterers to make future charter payments; potential shipyard and project construction delays, newbuilding specification changes or cost overruns; costs relating to projects; delays in commencement of operations of FPSO and FSO units at designated fields; failure to complete, or delays in completing, the sale of the Shoshone Spirit VLCC; Teekay LNG Partners' ability to secure financing for its committed growth projects, including potential delays; changes in the Company's expenses; and other factors discussed in Teekay's filings from time to time with the SEC, including its Report on Form 20-F for the fiscal year ended December 31, 2015. The Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company's expectations with respect thereto or any change in events, conditions or circumstances on which any such statement is based.