Teekay and Brookfield Close Strategic Transaction

Image Courtesy: Teekay

Teekay Corporation and Teekay Offshore Partners L.P.  today announced that they have completed their previously announced comprehensive transaction with Brookfield Business Partners L.P., together with its institutional partners.

Brookfield’s total investment in Teekay Offshore is approximately USD 750 million, of which Brookfield Business Partners has funded approximately USD 310 million.

Kenneth Hvid, Teekay’s President and CEO stated, “With this comprehensive transaction now completed, Teekay looks forward to working with Brookfield as co-sponsors of Teekay Offshore to support the Partnership’s continued growth,”

“This transaction has significantly strengthened Teekay Offshore’s capital structure and together with management and the Board of Directors, we are now in a position to focus on developing the next phase of the Partnership’s strategy,” he added.

“With our existing in-progress growth projects now fully financed and nearing completion, our top priority is to deliver these projects into operation, which are expected to contribute approximately an incremental $200 million of run-rate annual cash flow from vessel operations,” commented Ingvild Sæther, President and CEO of Teekay Offshore Group Ltd.

Ms. Sæther continued “With a stronger balance sheet, access to capital, market-leading positions and presence in attractive markets, we believe Teekay Offshore is well-positioned to take advantage of future opportunities as the global energy market recovers.”