Teekay LNG Partners L.P.

Teekay LNG Partners L.P.

April 17, 2008 18:10 ET

Teekay LNG Partners Announces Pricing of Follow-On Offering

HAMILTON, BERMUDA--(Marketwire - April 17, 2008) - Teekay LNG Partners L.P. (Teekay LNG or the Partnership) (NYSE:TGP) announced today that it has priced its follow-on public offering of 5,000,000 common units, which represent limited partner interests, at $28.75 per unit. Teekay LNG has granted the underwriters a 30-day option to purchase up to an additional 750,000 units to cover over-allotments, if any. The Partnership expects to use the proceeds of the offering to repay amounts outstanding on one of its revolving credit facilities, which has been used to fund vessel acquisitions.

In addition and concurrently with the closing of the public offering, Teekay Corporation (Teekay), the parent of our general partner, has agreed that it will purchase directly from Teekay LNG 1,739,130 common units at $28.75 per unit.

Teekay LNG Partners L.P. is a publicly-traded master limited partnership formed by Teekay (NYSE:TK) as part of its strategy to expand its operations in the liquefied natural gas (LNG) and liquefied petroleum gas (LPG) shipping sectors. Teekay LNG provides LNG, LPG and crude oil marine transportation services under long-term, fixed-rate charter contracts with major energy and utility companies through its fleet of fifteen LNG carriers, four LPG carriers and eight Suezmax class crude oil tankers. Six of the fifteen LNG carriers and three of the four LPG carriers are newbuildings scheduled for delivery between the second quarter of 2008 and mid-2009.

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

After the offering, Teekay will own approximately a 58% interest in Teekay LNG, including common units, subordinated units and its general partner interest. This ownership interest will be reduced to approximately 57% if the underwriters exercise their overallotment option in full. The offering is expected to close on April 23, 2008.

The joint book running managers for this offering are Citi and Wachovia Securities. The co-managers are UBS Investment Bank, Raymond James & Associates, Inc., Deutsche Bank Securities and Dahlman Rose & Company.

When available, copies of the prospectus supplement and accompanying base prospectus related to this offering may be obtained from Citigroup Global Markets Inc., Brooklyn Army Terminal, 140 58th Street, Brooklyn, New York, 11220, Attention: Prospectus Department; phone: (800) 831-9146; or Wachovia Capital Markets, LLC, 375 Park Avenue, New York, New York, 10152, Attention: Equity Syndicate Department; Email: equity.syndicate@wachovia.com.

This news release does not constitute an offer to sell or a solicitation of an offer to buy the securities described herein, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. This offering may be made only by means of a prospectus supplement and accompanying base prospectus.

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.

Contact Information

  • Teekay LNG Partners L.P.
    Scott Gayton
    Investor Relations Enquiries Contact
    (604) 609-4740
    Teekay LNG Partners L.P.
    Alana Duffy
    Media Enquiries Contact
    (604) 844-6605
    Website: www.teekaylng.com