Teekay LNG Partners has received approval for a USD 100 million repurchase program of common units.
The company said that the common units may be repurchased in the open market or privately-negotiated transactions or otherwise at times and prices considered appropriate by the partnership.
“The timing of any purchases and the exact number of common units to be purchased under the program will be dependent on market conditions and other factors,” Teekay LNG added.
The partnership would establish a trading plan pursuant to Rule 10b5-1 under the U.S. Securities Exchange Act relating to the repurchase of its common units.
The common unit repurchase program will help the partnership delever its balance sheet and enable the company to return some of the additional capital generated from the current strong LNG carrier market and early newbuilding deliveries.
Additionally, Teekay LNG secured approvals from common unitholders for all proposals presented at its special meeting on December 18, including the proposal to allow Teekay LNG to elect to be treated as a corporation, instead of a partnership, for U.S. federal income tax purposes.
As a result, effective January 1, 2019, Teekay LNG will be treated as a corporation for U.S. federal income tax purposes.
“We believe that Teekay LNG’s common units represent compelling value and repurchasing them is currently the best investment we can make,” Mark Kremin, President and Chief Executive Officer of Teekay Gas Group Ltd, said.