Shares of Teekay Corp. and Teekay Offshore Surge on Investment Deal With Brookfield Business Partners

Shares of Teekay Corp. and Teekay Offshore Surge on Investment Deal With Brookfield Business Partners

Shares of Teekay Corporation (NYSE: TK) and Teekay Offshore Partners (NYSE: TOO) are up 12.6% and 7.4%, respectively, as of 11:15 a.m. EDT today. The jump comes after Teekay announced a transaction with Brookfield Business Partners LP (NYSE: BBU) for a stake in Teekay Offshore Partners.

It's no secret that Teekay Offshore Partners has been struggling for some time. While the company has a decent suite of assets with long-term contracts in place for its fleet of floating production, storage, and offloading (FPSO) and shuttle tanker vessels, it has struggled to access financing to pay for its newbuilds. As a result, its leverage was way too high for any company to have rightfully.

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Source: Fool.com