Teekay Offshore Partners has financed new shuttle tankers with a series of sale and leaseback and loan deals.
The US-listed company said it had sealed pre-delivery financing with an unnamed third party for two vessels currently under construction at Samsung in South Korea.
The 103,000-dwt ships - the last of seven due from the yard - will then be sold for an adjustable price of $107.1m each when they are delivered in late 2020 and early 2021.
The tankers will be chartered back for 10 years and then sold back to Teekay.
The financing bears interest at a fixed rate of 5.5%, while the post-delivery sale and leaseback transaction is based on an interest rate of LIBOR plus 2.85%.
In addition, the company has secured a $100m bridge term loan to provide pre- and post-delivery financing for a shuttle tanker newbuilding to operate on the east coast of Canada.
This matures in August 2022 and carries interest of LIBOR plus 250 basis points until March 2020. It increases by 25 basis points per quarter thereafter.
"The partnership intends to refinance the bridge loan into the existing east coast Canada shuttle financing secured by the three vessels in operation," it said.
Notes sold, loans stretched
The company also revealed it had sold $120m of notes in a private US placement, for general corporate purposes.
They carry interest of 7.11% up to September 2027.
Teekay has also extended a loan secured by its Arendal Spirit floatel from September this year to February 2023.
And it has stretched a deal for a revolving credit facility provided by Brookfield worth $125m.
It now matures on 1 October, 2020, at interest of LIBOR plus a margin of 7% on any drawn amount during the extended term.
The shipowner announced a net loss of $34.76m for the third quarter, down from $39.35m a year ago.
Revenue dipped to $299.44m against $327.65m, but the bottom line was boosted by a lower tax bill.
The revenue fall was primarily due to reduced charter rates under the Piranema FPSO contract extension, the completion of the Ostras FPSO charter contract in March 2019 and the re-delivery of an older shuttle tanker in August 2019.
Costs cut
Voyage and vessel operating expenses fell by $14m, mainly due to lower shuttle tanker operating expenses and the sale of certain shuttle tankers, it added.
"We have delivered another solid operational quarter, with high up-times and disciplined cost performance, reporting an adjusted EBITDA of $158m," said CEO Ingvild Saether.
The company now has 31 shuttle tankers.
Saether added: "On the financing side, it has been another busy period with the closing of several financings and refinancings that have improved the maturity schedules and strengthened the balance sheets of both Teekay Offshore and Teekay Shuttle Tankers, our 100% owned and ring-fenced subsidiary."
