Teekay Offshore Partners Announces Completion of Financing Initiatives

HAMILTON, BERMUDA--(Marketwired - June 29, 2016) - Teekay Offshore Partners L.P. (Teekay Offshore or the Partnership) (NYSE:TOO) announced today that it has completed and closed its previously announced financing initiatives.

"I am pleased to announce the completion of Teekay Offshore's financing initiatives, which include $400 million in bank financings, $200 million of equity capital, and the deferral of certain bond maturities," commented Peter Evensen, Teekay Offshore's Chief Executive Officer. "These financing initiatives, together with cash flow from operations and previously secured debt facilities, 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. With the addition of these projects, which are expected to contribute to the stability and further growth of our cash flows, we expect to continue to strengthen our balance sheet and position the Partnership for future increases to its cash distributions."

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

Citigroup and DNB Markets acted as lead placement and structuring agents for the Partnership's combined $200 million of equity initiatives and ABN AMRO Securities (USA) LLC also acted as placement agent.

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 Partnership's financing initiatives, including the Partnership's ability to meet medium-term liquidity requirements and finance its committed growth projects; and the expected impact of the delivery of the Partnership's existing growth projects on its cash flows, balance sheet and future cash distributions. 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; vessel operations and oil production volumes; significant changes in oil prices; variations in expected levels of field maintenance; increased operating expenses; different-than-expected levels of oil production in the North Sea, Brazil and East Coast of Canada offshore fields; potential early termination of contracts; shipyard delivery or vessel conversion and upgrade delays and cost overruns; changes in exploration, production and storage of offshore oil, either generally or in particular regions that would impact expected future growth; delays in the commencement of charter contracts; failure of the Partnership's growth projects to increase cash available for distribution; and other factors discussed in Teekay Offshore's filings from time to time with the SEC, including its Report on Form 20-F for the year ended December 31, 2015. The Partnership 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 Partnership's expectations with respect thereto or any change in events, conditions or circumstances on which any such statement is based.