Updated from 12:27 p.m. EDT

Teekay LNG Partners ( TGP) 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), Morgan Stanley ( MS) and UBS Investment Bank. The co-managers are Deutsche Bank Securities ( DB) and Raymond James & Associates ( RJF).

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

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

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