November 12, 2009
HAMILTON, BERMUDA–(Marketwire – Nov. 12, 2009) – Teekay Offshore Partners L.P. (Teekay Offshore or the Partnership) (NYSE:TOO) announced today that it has signed a $260 million revolving credit facility secured by the Petrojarl Varg Floating Production Storage and Offloading unit (Petrojarl Varg FPSO) which was recently acquired from Teekay Corporation (Teekay) (NYSE:TK). A portion of the new facility will be drawn to repay the $160 million Tranche A of the $220 million vendor financing provided by Teekay at the time of the Petrojarl Varg FPSO acquisition. The $60 million Tranche B of the vendor financing will remain outstanding. The undrawn portion of the new revolving credit facility will immediately increase the Partnership’s liquidity by approximately $100 million. The new facility was arranged through a syndicate of commercial banks led by ING Bank N.V. “Our ability to complete the syndication of a new revolving credit facility on competitive terms in this challenging bank market reflects both the diversity of our banking relationships and the quality of cash flows generated by the Petrojarl Varg FPSO,” commented Peter Evensen, Chief Executive Officer of Teekay Offshore GP LLC, the Partnership’s General Partner. “The new facility is well-matched to the Petrojarl Varg contract and provides additional liquidity which enhances the Partnership’s financial flexibility.” Mr. Evensen added, “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. In July 2009, this FPSO unit commenced a new a four-year fixed-rate contract extension (including options to extend the new contract for up to an additional nine years) with Talisman Energy on the Varg oil field in the North Sea, where the FPSO has been operating for over ten years. About Teekay Offshore Partners L.P. Teekay Offshore Partners L.P., a publicly-traded master limited partnership formed by Teekay Corporation (NYSE:TK), is an international provider of marine transportation and storage services to the offshore oil industry. Teekay Offshore currently owns a 51 percent interest in and controls Teekay Offshore Operating L.P., a Marshall Islands limited partnership with a fleet of 33 shuttle tankers (including eight chartered-in vessels), four floating storage and offloading (FSO) units, nine double-hull conventional oil tankers and two lightering vessels. In addition, Teekay Offshore has direct ownership interests in two shuttle tankers, one FSO unit, and one FPSO unit. Teekay Offshore also has rights to participate in certain other FPSO opportunities. Teekay Offshore’s common units trade on the New York Stock Exchange under the symbol “TOO”.