Teekay announces Brookfield has acquired controlling interest in GP.
Teekay Offshore Partners (TOO) announced that Brookfield Business Partners (BBU), together with its institutional partners, has exercised its option to acquire an additional 2% ownership interest in Teekay Offshore's general partner from Teekay Corporation. As a result, Brookfield now holds a 51% interest in Teekay Offshore GP and has the right to appoint a majority of the members of its board of directors. Teekay Corporation will continue to have the right to appoint two members of the Board so long as it owns at least 10% of the Partnership's outstanding common units. Brookfield has informed the Partnership that no changes to the Board composition are planned at this time. Brookfield's exercise of its 2% option represents a change of control event with respect to the Partnership's 6.00% Senior Notes due 2019, which will entitle each holder of such notes to require the Partnership to repurchase any or all of the notes held by such holder for a price equal to 101% of the principal amount of such repurchased notes plus any accrued and unpaid interest, and the Partnership's Norwegian Kroner-denominated notes due 2019, which will entitle each holder of such notes to require the Partnership to repurchase the notes held by such holder for a price equal to 100% of the principal amount of such repurchased notes plus accrued and unpaid interest. The Partnership will deliver the requisite notices to the holders of the Partnership's 6.00% Senior Notes due 2019 and Norwegian Kroner-denominated senior notes due 2019 regarding the change of control pursuant to their indenture and bond agreement, respectively.
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|Date:||Jul 3, 2018|
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