Updated from 12:27 p.m. EDT

Teekay LNG Partners ( TGP - Get Report) 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 - Get Report), Morgan Stanley ( MS - Get Report) and UBS Investment Bank. The co-managers are Deutsche Bank Securities ( DB - Get Report) 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 - Get Report). Among its competitors are Frontline ( FRO - Get Report) and Overseas Shipholding Group ( OSG).

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