NEW YORK (AP) -- Shares of Teekay Offshore Partners LP fell Wednesday after the provider of offshore oil production equipment announced pricing for an offering of new stock that will dilute the value of existing shares.
THE SPARK: Teekay said it priced an offering of 7.4 million shares at $27.65 each, and it gave underwriters a 30-day option to buy up to 1.11 million more shares or limited-partnership units.
The company said it would use proceeds in part for its purchase of a floating oil-production facility called the Voyageur Spirit from Sevan Marine ASA for about $165 million. The sale was announced last year and is expected to close in November.
The offering would add new shares equal to 12 percent of the number outstanding, according to a recent regulatory filing.
Teekay Offshore was formed by general partner Teekay Corp. and provides tankers and offshore production and storage facilities for oil companies.
SHARE ACTION: Shares of Teekay Offshore fell $1.51, or 5.3 percent, to $27.25 in afternoon trading. In the past year, they have ranged from a low of $22.20 on Oct. 4, 2011 to a high of $30.14 on March 19.