Teekay Offshore Partners has announced plans for a $500m bond issue as it looks to buy-back two bonds due to mature in 2019.
Few details of the bond offering by the US-listed master limited partnership (MLP) were given other than the tenure, which will be five years.
Proceeds from the offering will go towards funding a tender offer to purchase its outstanding 6% bonds due 2019 and its outstanding NOK1bn ($124.3m) bonds also due 2019.
However, Teekay Offshore Partners said the proposed offering was “not conditioned” on the consummation of the tender offers.
Existing bondholders have until 10 July 2018 to accept the bond buy-back offer. However, those tendering their bonds by 2 July 2018 will receive a higher payout.
Bondholders meeting the earlier tender deadline will receive $1,025 for each $1,000 principal amount of bonds accepted for repayment, while those meeting the latter deadline will receive only $955.
News of the bond issue comes just days after Teekay Offshore Partners named Tim Cowan as its interim chief financial officer while it conducts a search for a full-time replacement.
Cowan holds the position of senior vice president at Brookfield Asset Management, the investment firm that took a 49% stake in Teekay Offshore GP, along with a 60% stake in the publicly traded Teekay Offshore Partners, last September.
Cowan is said to have 15 years of finance experience, including principal investing, asset management, capital markets and advisory work.
