TOO builds warchest

Tanker and FPSO owner Teekay Offshore Partners (TOO) is selling new notes to pay for existing newbuildings and to fund future fleet expansion.

The senior unsecured notes will be due in 2019, but it has not revealed a target amount.

TOO said the money would go towards funding newbuilding instalments, capital conversion projects and future acquisitions of vessels from Teekay Corporation or third parties.

It also expects to pay off some debt.

The owner will list the notes on the New York Stock Exchange.

Banks involved in the issue are Sterne, Agee & Leach, DNB Markets, ABN AMRO, Raymond James and Scotiabank.

TOO has 35 shuttle tankers, five FPSOs, six FSOs, four anchor-handler newbuildings and four conventional tankers.