Teekay Offshore is spending NOK 923.1m ($113m) on buying back Norwegian bonds as part of a new $700m notes issue at the same time as a key strategic investor upped its holding in the company.
Teekay Offshore said investors have tendered notes worth NOK 905m from the NOK 1bn series due in 2019.
It will pay NOK 1,020 per bond, or 102% of par value. The offer closes on 10 July.
The Ingvild Saether-led company increased its recent issue of 8.5% bonds due 2023 from $500m to $700m this month.
Brookfield, the holder of 59.5% of Teekay Offshore’s outstanding common units, has agreed to buy $500m.
The investor, which injected $640m into the shipowning company last year, has added an extra 2% to its holding - swelling its stake to 51%.
Teekay Offshore said that from time to time in the future, it may acquire outstanding bonds through open market purchases, privately negotiated transactions or other offers.
Brookfield's arrival at Teekay Offshore last year saw an injection of capital, debts repaid or extended and the Teekay Offshore shuttle tanker business separated into a new unit.
