New York-listed tanker group Teekay Corporation is planning a $300m notes offering, subject to market conditions.
The company said the debt will be due in 2024.
It expects the notes will be guaranteed by certain Teekay subsidiaries.
They will initially be secured by first-priority liens on two of Teekay’s FPSOs, as well as stock pledges.
The proceeds will go on buying back its outstanding 8.5% notes due in 2020.
The rest of the money needed for this will come from cash and existing loan facilities.
The new notes issue is conditional on a majority of the 2020 noteholders agreeing.
Last January, Teekay sold a convertible senior notes issue due in 2023.
They came with a 5% coupon.
At that time, the company had $593m of the 2020 notes outstanding.
