Teekay Offshore (TOO) to Acquire HiLoad DP Unit in $55M Deal
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Teekay Offshore Partners (NYSE: TOO) announced that it has entered into an agreement to acquire a 2010-built HiLoad Dynamic Positioning (DP) unit from Remora AS (Remora), a Norway-based offshore marine technology company, for a total purchase price of approximately $55 million. The HiLoad DP unit is a self-propelled dynamic positioning system that attaches to and keeps conventional tankers in position when loading from offshore installations.
Under the terms of the agreement, which has been approved by the Teekay Offshore Board of Directors, Teekay Offshore will:
* Acquire the HiLoad DP unit from Remora;
* Complete modifications required for the HiLoad DP unit to service a new long-term time-charter contract; and
* Enter into an omnibus agreement which provides the right of first refusal to acquire future HiLoad DP projects developed by Remora.
As part of the transaction, Teekay Corporation (Teekay) has also agreed to invest approximately $4.4 million to acquire a 49.9 percent fully diluted ownership interest in a recapitalized Remora.
All elements of the transaction remain subject to finalizing a 10-year time-charter contract with Petroleo Brasileiro SA (Petrobras) in Brazil. The acquisition of the HiLoad DP unit and investment in Remora equity are both expected to close in December 2012. The acquired HiLoad DP unit is expected to commence operating at its full time-charter hire rate in December 2013 once modifications, delivery of the HiLoad DP unit to offshore Brazil and operational testing have been completed.
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Under the terms of the agreement, which has been approved by the Teekay Offshore Board of Directors, Teekay Offshore will:
* Acquire the HiLoad DP unit from Remora;
* Complete modifications required for the HiLoad DP unit to service a new long-term time-charter contract; and
* Enter into an omnibus agreement which provides the right of first refusal to acquire future HiLoad DP projects developed by Remora.
As part of the transaction, Teekay Corporation (Teekay) has also agreed to invest approximately $4.4 million to acquire a 49.9 percent fully diluted ownership interest in a recapitalized Remora.
All elements of the transaction remain subject to finalizing a 10-year time-charter contract with Petroleo Brasileiro SA (Petrobras) in Brazil. The acquisition of the HiLoad DP unit and investment in Remora equity are both expected to close in December 2012. The acquired HiLoad DP unit is expected to commence operating at its full time-charter hire rate in December 2013 once modifications, delivery of the HiLoad DP unit to offshore Brazil and operational testing have been completed.
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