Teekay Offshore Partners is aiming to sell $115m in new shares.
The company said it will sell 4.6 million of its 8.875% series E preferred units at $25 per share.
The New York-listed company, a subsidiary of Kenneth Hvid-led Teekay Corp, said it intends to grant underwriters a 30-day option to buy 690,000 additional shares from the partnership.
The company announced the offering earlier today, without disclosing financial details.
It said net proceeds will go toward "general corporate purposes," including newbuilding installments, conversion projects and debt repayments.
Distributions will be payable at an annual interest rate of 8.875% up to 15 February 2025, and then thereafter at a floating rate equal to three-month Libor plus a margin of 640.7 basis points.
The joint book-running managers for the offering are Morgan Stanley, UBS Securities, J.P. Morgan Securities and Stifel, Nicolaus & Company. The co-managers are Commonwealth Bank of Australia, ING Financial Markets and Scotia Capital (USA).
The company intends to apply to have the Series E preferred units listed on the New York Stock Exchange.
Teekay Offshore has 58 vessels and four other shuttle tankers on order for delivery through 2020 and a single anchor handler set to be handed over this year.
