Teekay Offshore Secures Loan for Four Shuttle Tanker Newbuilds

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Teekay Offshore Partners announced on Thursd that it has secured a new $414 million long-term debt facility that will be used to finance four LNG-fueled Suezmax DP2 shuttle tanker newbuildings.

Upon delivery in 2019 and 2020, two of the vessels will commence operations under the Partnership’s Master Agreement with Equinor, while the remaining two vessels will join the Partnership’s contract of affreightment (CoA) shuttle tanker portfolio in the North Sea.

The new facility is funded and guaranteed by both Canadian and Norwegian export credit agencies, and commercial banks and bears interest at LIBOR + 225 basis points with a tenor for up to 12 years from the delivery date of each vessel and a blended profile of 18 years.

“We are grateful for the continued strong support we receive from our growing bank group, as represented by our new $414 million debt facility,” commented Ingvild Sæther, President and CEO of Teekay Offshore Group Ltd.

Teekay Offshore has consolidated assets of approximately $5.3 billion, comprised of 60 offshore assets, including floating production, storage and offloading (FPSO) units, shuttle tankers (including six newbuildings), floating storage and offtake (FSO) units, long-distance towing and offshore installation vessels, and a unit for maintenance and safety (UMS).

Sea News, April 5