Teekay Offshore Announces Successful Offering of New Bonds and Repurchase of Bonds Maturing in 2018

HAMILTON, BERMUDA--(Marketwired - Aug. 2, 2017) - Teekay Offshore Partners L.P. (NYSE:TOO) (Teekay Offshore or the Partnership) announces that its 100 percent-owned subsidiary, Teekay Shuttle Tankers LLC (Teekay Shuttle Tankers), has successfully completed an offering of USD 250 million of new senior unsecured bonds in the Norwegian bond market. The new bonds will have a coupon of 7.125 percent and mature in August 2022.

Teekay Shuttle Tankers was recently established to own the Partnership's existing and future shuttle tanker business.

In connection with the bond issuance, and Teekay Shuttle Tankers' acquisition of the shuttle tanker business from the Partnership, Teekay Offshore will repurchase approximately NOK 199 million of its TOP02 bonds (ISIN NO 0010635329) maturing in November 2018 at a price of 101 percent of par value and approximately NOK 512 million of its TOP04 bonds (ISIN NO 0010670128) maturing in December 2018 at a price of 101 percent of par value.

On or around the date of disbursement of the funds from the new bond issuance, the Partnership intends to call all remaining outstanding TOP02 and TOP04 bonds at the time prevailing call premium. The new bond issuance, repurchase and discharge of TOP02 and TOP04 bonds are contingent on certain conditions precedent including those related to the previously announced strategic partnership with Brookfield Business Partners LP and its institutional partners (Brookfield).

DNB Markets acted as Global Coordinator and Danske Bank, Nordea and Swedbank as Joint Lead Managers of the new bond issuance.

About Teekay Offshore

Teekay Offshore Partners L.P. is an international provider of marine transportation, oil production, storage, long-distance towing and offshore installation and maintenance and safety services to the oil industry, primarily focusing on oil production-related activities of its customers and operating in offshore oil regions of the North Sea, Brazil and the East Coast of Canada. Teekay Offshore is structured as a publicly-traded master limited partnership (MLP) with consolidated assets of approximately $5.6 billion, comprised of 62 offshore assets, including floating production, storage and offloading (FPSO) units, shuttle tankers, floating storage and offtake (FSO) units, units for maintenance and safety (UMS), long-distance towing and offshore installation vessels and conventional tankers. The majority of Teekay Offshore's fleet is employed on medium-term, stable contracts.

Teekay Offshore Partners' common units and Series A and B preferred units trade on the New York Stock Exchange under the symbol "TOO", "TOO PR A" and "TOO PR B", respectively.

Forward Looking Statements

This release contains forward-looking statements (as defined in Section 21E of the U.S. Securities Exchange Act of 1934, as amended) which reflect management's current views with respect to certain future events and performance, including statements regarding: the timing and certainty of completing certain bond transactions including the potential for a new bond issuance at Teekay Shuttle Tankers or the repurchase and discharge of certain bonds at Teekay Offshore. The following factors are among those that could cause actual results to differ materially from the forward-looking statements, which involve risks and uncertainties, and that should be considered in evaluating any such statement: the ability of the Partnership to complete the strategic transaction with Brookfield and to complete Teekay Shuttle Tankers' acquisition of the shuttle tanker business from the Partnership; and other factors discussed in Teekay Offshore's filings from time to time with the SEC, including its Report on Form 20-F for the fiscal year ended December 31, 2016. The Partnership expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Partnership's expectations with respect thereto or any change in events, conditions or circumstances on which any such statement is based.