Teekay Corporation Ltd. · NYSE:TK
Teekay — Merger or Acquisition (July 2017)
14 slides from Teekay's merger presentation, Jul 27, 2017
Slide 1: Teekay Strategic Partnership with Brookfield
KK TEEKAY STRATEGIC RTNERSHIP 3ROOKFIELD
Slide 2: Forward Looking Statement
Forward Looking Statement In addition to historical information, this presentation contains forward-looking statements (as defined in Section 21E of the Securities Exchange Act of 1934, as amended) that involve risks and uncertainties. Forward-looking statements in this presentation include, in part
Slide 3: Strategic Partnership
Strategic Partnership Brookfield attracted to TOO’s high quality contracted cash flows and market leading positions in the offshore production and logistics space $640 million equity investment significantly strengthens TOO’s balance sheet and improves liquidity Fully finances TOO’s existing growth
Slide 4: Co-Sponsorship of TOO
Co-Sponsorship of TOO TOO ownership post-transaction GP – 51% TK / 49% Brookfield LP – 60% Brookfield / 14% TK / 26% public Board composition: 4 Brookfield, 2 TK and 3 independents Brookfield has the option to increase its GP ownership stake to 51% subject to the satisfaction of certain conditions C
Slide 5: Brookfield Asset Management Overview
Brookfield Asset Management Overview Over 100 years of experience as a leading global investor, operator and manager of real assets with ~$250 billion of assets under management Extensive experience owning and operating businesses in the energy supply chain through global partnerships One of the wor
Slide 6: Transforming TOO's Capital Structure
Transforming TOO’s Capital Structure Enhancing capacity for growth Extending maturities on debt and swaps TK to sell existing $200m parent loan to Brookfield at a discount to par and Brookfield to extend loan maturity to 2022 In the process of refinancing a significant portion of existing TOO NOK bo
Slide 7: TOO Current and Pro Forma Capitalization
TOO Current and Pro Forma Capitalization Expected near-term uses of cash proceeds Existing Growth Projects Pay-down Debt / Swaps Build Liquidity All figures presented on consolidated TOO. Debt and cash balances estimated as at June 30, 2017.
Slide 8: Transaction Extends TOO's Maturity Profile
Baseline maturity profile US$ millions (2) (1) Teekay Intercompany loan Pro forma maturity profile Note that figures assume all initiatives completed and on contemplated terms Principal amounts are net of restricted cash and include cross currency swap maturities based on the mark-to-market as of Ju
Slide 9: Transaction Significantly Reduces TOO's Leverage
Transaction Significantly Reduces TOO’s Leverage Note: This slide contains various non-GAAP financial measures. See respective TOO earnings releases for non-GAAP reconciliations for Q3-2016, Q4-2016 and Q1-2017 and Q2-2017 is based on management estimates. Adjusted Net Debt includes TOO’s $200 milli
Slide 10: Large and Diversified Portfolio of Forward Revenues
Contracted forward revenues of $6.5 billion (excluding options) support stable and growing cash flows Large and Diversified Portfolio of Forward Revenues 2016 CFVO: ~$590M Run-rate CFVO: ~$200M Forward revenues from existing operations by segment(1) Forward revenues from growth projects by segment(1
Slide 11: TOO's Growth Pipeline Now Fully Financed
TOO’s Growth Pipeline Now Fully Financed $200 million of additional annual CFVO from growth projects(2) Includes only TOO’s 50% proportionate share of the Libra FPSO unit. Excludes amounts reimbursable upon delivery. Cash funds held in escrow. Project Remaining CAPEX ($ millions as at Jun 30, 2017)
Slide 12: Investing in our Market Leading Shuttle Franchise
Investing in our Market Leading Shuttle Franchise Strategic partnership allows us to pursue attractive investment opportunities TOO has ordered two Suezmax-size, DP2 shuttle tanker newbuildings, plus options for two additional vessels at Samsung Heavy Industries Vessels will be based on Teekay’s New
Slide 13: Key Takeaways
Key Takeaways Capital to pursue future growth Co-sponsors focused on maximizing shareholder value Stable and growing cash flows Attractive Markets Market leading positions
Slide 14: Bringing Energy To
BRINGING ENERGY TO