Teekay Offshore Partners announced today that it plans to offer five million common units, representing limited partner interests, in a public offering. Teekay Offshore expects to grant the underwriters a 30-day option to purchase an additional 750,000 common units to cover over-allotments, if any.

The partnership expects to use the net proceeds from the public offering for general partnership purposes, including funding the acquisitions of vessels that Teekay Corporation may offer to it. Pending the application of funds for these purposes, the Partnership expects to repay a portion of its outstanding debt under one of its revolving credit facilities.

Teekay Offshore Partners is a publicly-traded master limited partnership formed by Bermuda-based Teekay Corporation.

The joint book-running managers for this offering are BofA Merrill Lynch, Citi and UBS Investment Bank.