Teekay LNG launches share sale to pay down debt

Tuesday, 15 May 2007

Teekay LNG, which is based in Nassau, the Bahamas, is also expected to grant the underwriters a 30-day option to purchase an additional 300,000 shares to cover any over-allotments.

The company said it expected to use the cash to repay amounts outstanding on one of its revolving credit facilities, and for general partnership purposes.

The LNG arm of Canadian company Teekay Shipping Corp. currently operates a fleet of seven LNG carriers. The company has six other LNG carriers on order and due for delivery between mid-2008 and mid-2009.

After the share offering, the parent company, Teekay Shipping Corp. of Canada, will own about 64 percent of  the LNG unit.

Teekay LNG is a publicly-traded master limited partnership formed by Teekay Shipping, whose New York Stock Exchange ticker is TK. Teekay LNG’s common shares trade on the NYSE under the symbol TGP.

Teekay LNG also provides liquefied petroleum gas and crude oil marine transportation services under long-term, fixed-rate time charter contracts with major energy and utility companies.

The book-running manager for the LNG unit’s share offering is Wachovia Securities.