Sterne Agee Believes Teekay's JV to be Accretive
Sterne Agee has published a research report on Teekay Corporation (NYSE: TK) after the company announced a joint venture with AP Moller-Maersk.
In the report, Sterne Agee writes, "Teekay LNG (NYSE: TGP), a daughter company of Teekay Corp., announced today that it has formed a JV with Marubeni Corp. to buy 8 LNG carriers for a purchase price of $1.4 billion, TGP's largest acquisition to date. TGP will have a 52% ownership stake in the JV. Financing for the $1.4B transaction will come from new loan facilities ($1.12B) and from equity contributions of $280M from the JV partners (TGP's share of the equity portion is $146M given its 52% JV interest)."
Sterne Agee maintains its Buy rating and $39 price target on Teekay Corporation, which is currently trading up $1.39 today from its $22.71 closing price.
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