Marine transportation and storage service provider Teekay Offshore Partners LP (TOO), Wednesday said it signed a $260 million revolving credit facility secured by the Petrojarl Varg Floating Production Storage and Offloading unit, which the company recently acquired from Teekay Corp. (TK). The facility was arranged through a syndicate of commercial banks led by ING Bank N.V.
Hamilton, Bermuda-based Teekay Offshore said a portion of the new facility will be used to repay the $160 million Tranche A of the $220 million vendor financing provided by Teekay at the time of the acquisition of Petrojarl Varg FPSO. The $60 million Tranche B of the vendor financing, however, will remain outstanding.
The un-drawn portion of the new revolving credit facility would immediately raise Teekay Offshore's liquidity by around $100 million.
Commenting on the transaction, Peter Evensen, Chief Executive Officer said, "This transaction is another example of the beneficial relationship we have with our sponsor, Teekay Corporation. The interim vendor financing enabled us to complete the acquisition of the Partnership's first FPSO unit on a timely basis, while the details of this facility were being finalized."
Teekay Offshore purchased the Petrojarl Varg FPSO from Teekay on September 10, 2009 for $320 million and had commenced a new a four-year fixed-rate contract extension with Talisman Energy on the Varg oil field in the North Sea.
TOO is currently trading at $16.96, down $0.24 or 1.40%, on the NYSE.
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