Teekay Corporation announces closure of Stonepeak’s
HAMILTON, Bermuda, Jan. 13, 2022 (GLOBE NEWSWIRE) — Teekay Corporation (teekay) (NYSE: TK) announces the closing of the previously announced merger of Teekay LNG Partners LP (Teekay LNG) (NYSE:TGP) with investment vehicles managed by Stonepeak (the Merger). As part of the merger, Teekay sold its entire ownership interest in Teekay LNG, including approximately 36.0 million common units of Teekay LNG, and Teekay GP LLC, the general partner of Teekay LNG (equivalent to approximately 1. 6 million common units of Teekay LNG), for $17.00 per common unit or cash equivalent of one common unit, and transferred various management services companies to Teekay LNG that service Teekay’s operations LNG and certain of its joint ventures under existing management services agreements. In consideration, Teekay received aggregate gross cash proceeds of approximately $641 million.
In mid-December 2021, Teekay elected to redeem all of its outstanding 9.25% Senior Secured Notes due November 2022 (the Tickets 2022) under the related indenture at 102.313% of the principal amount. As of January 12, 2022, Teekay had an aggregate aggregate principal amount of $243.4 million of 2022 Notes outstanding. The purchase is expected to close on January 14, 2022. In addition, on January 10, 2022, Teekay announced a cash tender offer for all of its outstanding 5.0% senior convertible bonds due January 2023 ( the offer Tickets 2023) at 102.0% of the principal amount. As of January 12, 2022, Teekay had $112.2 million aggregate principal amount of 2023 Notes outstanding. The cash tender is expected to be completed in February 2022.
“Teekay’s operating franchise and industry-leading capabilities have been developed over our nearly 50-year history as a leader in the ever-changing energy and transportation industries. We believe the significant financial strength we now have as a result of this transaction places us in an excellent position to pursue a range of attractive investment opportunities that leverage Teekay’s core competencies and institutional knowledge to create long-term shareholder value,” commented Kenneth Hvid, President and CEO of Teekay. CEO. “Following the repayment of our debt, the main components of our balance sheet will consist of cash of approximately $325 million, or the equivalent of only $3.20 per share; an economic interest in Teekay Tankers Ltd. about 30%; and a profitable marine services business with few assets in Australia. We are excited about the flexibility this gives us as we see both positive fundamentals in the tanker sector and growing demand for new transportation solutions that will enable the transition to a low carbon world.
Teekay is a leading provider of international crude oil and other shipping services. Teekay provides these services directly and through its controlling interest in Teekay Tankers Ltd. (NYSE: TNK), one of the world’s largest owners and operators of midsize tankers. Teekay’s consolidated entities manage and operate total assets under management of approximately $2 billion, consisting of approximately 55 conventional tankers and other marine assets. With offices in 8 countries and approximately 2,500 employees at sea and ashore, Teekay provides a full suite of marine services to the world’s leading energy companies.
Teekay’s common stock is listed on the New York Stock Exchange where it trades under the symbol “TK”.
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This press release contains forward-looking statements within the meaning of Section 27A of the US Securities Act of 1933, as amended, and Section 21E of the US Securities Exchange Act of 1934, as amended. All statements included in this press release, other than statements of historical facts, are forward-looking statements. When used in this press release, the words “expect”, “believe”, “anticipate”, “plan”, “intend”, “estimate”, “may”, “will or similar words are intended to identify statements. Readers are cautioned not to place undue reliance on these forward-looking statements and these forward-looking statements are qualified in their entirety by reference to the following cautionary statements. All forward-looking statements speak only as of the date hereof and are based on current expectations and involve a number of assumptions, risks and uncertainties that could cause actual results to differ materially from such statements. prospective. Forward-looking statements contained in this press release include: the timing and certainty of completion of Teekay’s redemption of its 9.25% Senior Secured Notes and cash tender offer for its Notes senior convertibles at 5.0%; the ability of Teekay’s operating franchise, capabilities, knowledge and financial positioning to create long-term shareholder value; the expected financial condition of the Company after the transaction; future tanker market fundamentals and the timing of any tanker market recovery; the demand for new low-carbon transport solutions; and future investment opportunities.
Actual results may differ materially from those indicated by these forward-looking statements. In addition, forward-looking statements represent the opinions of Teekay as of the date such statements were made. It is anticipated that subsequent events and developments may cause these views to change. These forward-looking statements should not be taken to represent opinions as of any date subsequent to the date hereof. Additional factors that could affect Teekay’s business or financial results include, among others: the satisfaction or waiver of the closing conditions of the redemption of the 2022 Bonds and the tender offer relating to the 2023 Bonds; changes in supply and demand for tankers and new low-carbon transport solutions; the future growth opportunities available to Teekay and its ability to pursue them successfully; and other factors described in the Risk Factors or other disclosures included in its SEC filings, including Teekay’s Annual Report on Form 20-F for the fiscal year ended December 31, 2020, as updated by subsequent filings or filings with the SEC. Teekay expressly disclaims any obligation to provide updated forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.