SAN FRANCISCO (Thomson Financial) - Teekay LNG Partners L.P. late Wednesday said it has agreed to acquire two specialized liquefied natural gas vessels, the Arctic Spirit and the Polar Spirit, from Teekay Corp. for $230 million.
The 88,000 cubic meter vessels were both built in 1993.
Teekay LNG expects to acquire the vessels on April 1, and immediately charter the vessels back to Teekay for a period of 10 years, plus options exercisable by Teekay to extend up to an additional 15 years.
The charters are expected to generate about $27 million yearly in operating cash flow to the partnership, the company said.
In a statement, Teekay LNG's Chief Executive Peter Evensen called the deal an 'accretive acquisition.'
Teekay LNG's closed the regular session down 15 cents at $27.30. Teekay finished down $1.68, or about 4.1%, at $39.36. Katherine Hunt kh COPYRIGHT Copyright Thomson Financial News Limited 2007. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.
The 88,000 cubic meter vessels were both built in 1993.
Teekay LNG expects to acquire the vessels on April 1, and immediately charter the vessels back to Teekay for a period of 10 years, plus options exercisable by Teekay to extend up to an additional 15 years.
The charters are expected to generate about $27 million yearly in operating cash flow to the partnership, the company said.
In a statement, Teekay LNG's Chief Executive Peter Evensen called the deal an 'accretive acquisition.'
Teekay LNG's closed the regular session down 15 cents at $27.30. Teekay finished down $1.68, or about 4.1%, at $39.36. Katherine Hunt kh COPYRIGHT Copyright Thomson Financial News Limited 2007. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.
© 2008 AFX News
