Teekay LNG prices offering at $24.40 per unit

AP News
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Posted: Nov 17, 2009 1:50 PM

Teekay LNG Partners LP, a liquefied gas shipping venture, said on Tuesday that it has priced a public offering of 3.5 million units at $24.40 apiece, about 1 percent above the stock's opening price for the day of $24.15.

Teekay LNG, a publicly traded partnership formed by Bermuda-based shipping company Teekay Corp., announced plans for the offering after its shares closed at $25.67 on Monday. The stock sank about 5 percent in after-hours trading, before the offer's pricing was announced Tuesday.

At midday Tuesday, the stock was trading at $24.31.

The partnership is using proceeds from the offering of limited partner interests to repay debt from one of its revolving credit agreements.

The offering is expected to close on Friday. The offering's joint book running managers are UBS Investment Bank and Cite, with RBC Capital Markets and Scotia Capital serving as co-managers.

The underwriters have a 30-day option to buy up to an additional 525,000 shares to cover any over-allotments.

Teekay Corp. formed Teekay LNG Partners to expand its operations in the liquefied natural gas and liquefied petroleum gas shipping sectors. The partnership transports fuel under long-term contracts with major energy and utility companies through its fleet of carriers and tankers.