Teekay Offshore Partners is selling more debt.
The Ingvild Saether-led company has increased its recent bond issue of $500m to $700m in 8.5% senior unsecured notes due 2023.
Brookfield TK TOLP, the holder of 59.5% of Teekay Offshore’s outstanding common units, has agreed to buy $500m principal amount of the notes in the offering set to close 2 July.
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.
It also plans to repay at par an outstanding $200m 10% promissory note of the partnership held by Brookfield due 2022 and make an associated $12 million make-whole payment.
Teekay may use the remaining net proceeds for general partnership purposes, which may include repaying debt.
Teekay Offshore has 62 offshore assets, including FPSO and FSO units and conventional tankers.
