Teekay talks $200 million tap of 8½% bullet notes due 2020 at 99.01; pricing Tuesday

By Paul A. Harris

Portland, Ore., Nov. 10 – Teekay Corp. talked a $200 million add-on to its 8½% senior bullet notes due Jan. 15, 2020 (B2) at 99.01, according to market sources.

Books close at 2 p.m. ET on Tuesday, and the Rule 144A and Regulation S offering is expected to price thereafter.

Talk comes in line with initial price guidance in the low 99 area.

J.P. Morgan Securities LLC and Citigroup Global Markets Inc. are the joint bookrunners.

DNB Nor is the senior co-manager. ABN Amro, Credit Agricole CIB, ING, Natixis, Scotia Capital and SG CIB are the co-managers.

The notes feature a make-whole call at Treasuries plus 50 bps but are otherwise non-callable.

The Hamilton, Bermuda-based company plans to use the proceeds to repay a portion of debt under its $500 million revolver and to replenish cash reserves used to repay its outstanding Norwegian krone-denominated bonds that matured in October 2015.

Teekay provides marine transportation, oil production and storage services to the offshore oil industry.

The original $450 million issue priced at 99.181 to yield 8 5/8% on Jan. 15, 2010.

Upon registration the add-on notes will become fungible with the original notes.

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