Teekay LNG Prices Follow-On Public Offering

Updated from 12:27 p.m. EDT

Teekay LNG Partners(TGP Quote) announced on Wednesday a public offering of 4,000,000 common units representing limited partner interests at $17.60 per unit. The underwriters have a 30-day option to buy an addition 600,000 units to cover any over-allotments, Teekay LNG said in a news release. The company plans to use the proceeds of the offering, which is expected to close March 30, to repay amounts outstanding on one of its revolving credit facilities, a sticking point for many firms in the shipping sector.

The joint book running managers for the offering are Citi(C Quote), Morgan Stanley(MS Quote) and UBS Investment Bank. The co-managers are Deutsche Bank Securities(DB Quote) and Raymond James & Associates(RJF Quote).

Teekay LNG, which provides natural gas, liquefied gas and crude oil marine transportation services, is a master limited partnership formed by Teekay Corp.(TK Quote). Among its competitors are Frontline(FRO Quote) and Overseas Shipholding Group(OSG Quote).

Teekay LNG shares fell 3% to $16.98 Tuesday. Teekay Corp. shares, meanwhile, rose 1.6% to $15.86.