October 18, 2011
HAMILTON, BERMUDA–(Marketwire – Oct. 18, 2011) – Teekay Corporation (Teekay or the Company) (NYSE:TK) today announced that it has entered into an agreement with Sevan Marine ASA (Sevan) and holders of more than two-thirds of each of Sevan’s bond loans for Teekay to acquire three floating production storage and offloading (FPSO) units from Sevan and make an equity investment in a recapitalized Sevan. Under the terms of the agreement, which has also been approved by the Board of Directors of Teekay and Sevan, Teekay will:
- Acquire from Sevan three FPSO units, the Sevan Piranema (Piranema), the Sevan Hummingbird (Hummingbird), and Sevan Voyageur (Voyageur), along with their existing charter contracts, for an aggregate purchase price of $668 million plus the remaining cost required to complete the upgrade of the Voyageur, which is estimated to be $110 – $130 million;
- Invest $25 million in a new issuance of Sevan equity, which is expected to provide Teekay with a 40 percent ownership interest in a recapitalized Sevan; and
- Enter into a cooperation agreement whereby Teekay will have the right to acquire future FPSO projects developed by Sevan.
- Two partially-completed hulls (#4 and #5) available for upgrade to FPSOs or other offshore projects;
- A licensing agreement with ENI;
- Engineering and offshore project development businesses (including 100 percent ownership of engineering subsidiary, Kanfa AS);
- Intellectual property rights, including offshore unit design patents; and
- Approximately $50 million in cash from the Equity Placement.