HAMILTON, BERMUDA--(Marketwired - Jan. 24, 2017) - Teekay LNG Partners L.P. (Teekay LNG or the Partnership) (NYSE:TGP) announces it has recently completed a Norwegian Kroner bond add-on offering and two new long-term financings for its growth projects delivering through 2019 as follows:
- NOK 300 million (equivalent to approximately USD 35 million) in new senior unsecured bonds through an add-on to its existing Norwegian Kroner bonds due in October 2021 priced at 103.75 percent of face value. All payments will be swapped into a US dollar fixed-rate coupon of approximately 7.7 percent;
- a $685 million sale-leaseback transaction with ICBC Leasing for four of the Partnership's MEGI LNG carrier newbuildings delivering in 2017 and 2018, including the Torben Spirit; and
- a $220 million(1) long-term debt facility relating to the Partnership's 30 percent interest in the Bahrain regasification facility.
"We continue to make significant progress on securing long-term financings for our growth projects and are pleased to announce the recent completion of new long-term financings totaling over $900 million," commented Mark Kremin, the President and CEO of Teekay Gas Group Ltd. "In addition, we are on track to complete the remainder of the required long-term financings for the Partnership's growth projects in the second half of 2017."
In addition, Teekay LNG also recently refinanced two debt facilities, including:
- refinancing and upsizing the Partnership's unsecured corporate revolver from $150 million to $170 million; and
- refinancing a $244 million(1) long-term debt facility secured by four 40 percent-owned LNG carriers, Al Huwaila, Al Kharsaah, Al Shamal, and Al Khuwair, in the Partnership's RasGas III joint venture with Qatar Gas Transport Company (QGTC) with a new $288 million(1) long-term debt facility.
About Teekay LNG
Teekay LNG Partners is one of the world's largest independent owners and operators of LNG carriers, providing LNG, LPG and crude oil marine transportation services primarily under long-term, fixed-rate charter contracts through its interests in 50 LNG carriers (19 newbuildings), 29 LPG/Multigas carriers (including four newbuildings) and six conventional tankers. The Partnership's interests in these vessels range from 20 to 100 percent. Teekay LNG Partners L.P. is a publicly-traded master limited partnership (MLP) formed by Teekay Corporation (NYSE:TK) as part of its strategy to expand its operations in the LNG and LPG shipping sectors.
Teekay LNG Partners' common units trade on the New York Stock Exchange under the symbol "TGP" and its Class A preferred units trade on the New York Stock Exchange under the symbol "TGP-PRA".
(1) Amounts represent the Partnership's pro rata share of the respective financings.
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 timing of newbuilding vessel deliveries; and the timing and certainty of completing the remaining financings for the Partnership's committed growth projects. 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: potential shipyard and project construction delays, newbuilding specification changes; the Partnership's and the Partnership's joint ventures' ability to secure financing for its existing newbuildings and projects; and other factors discussed in Teekay LNG Partners' filings from time to time with the SEC, including its Report on Form 20-F for the fiscal year ended December 31, 2015. The Partnership expressly disclaims any obligation 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.