Author Topic: TOO - Teekay Offshore Partners L.P.  (Read 72519 times)

Spekulatius

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Re: TOO - Teekay Offshore Partners L.P.
« Reply #240 on: May 20, 2019, 12:45:48 PM »
Yup, the scoundrels pounce. It amazes me how many people think they will print money "investing alongside" these type of companies. The same applies to the logic bending narratives with BRK and Warren doing all these benevolent things just to be an amazing person and make shareholders rich. Dudes who produce outsized returns do it because they maximize what they can extract from an investment. Not because they make everybody super rich by passing around free lunch tickets. These types of guys/groups almost never act in the interest of ALL shareholders.

It’s GGP all over again. Investing alongside BAM means one needs to buy BAM stock, nothing else. BAM tries to obtain control as cheaply as they can, nothing else.
Life is too short for cheap beer and wine.


Foreign Tuffett

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Re: TOO - Teekay Offshore Partners L.P.
« Reply #241 on: May 20, 2019, 02:20:34 PM »
Guy "Big Swiss" Spier making it known via Twitter that's he TOO, isn't pleased with recent developments.

https://twitter.com/GSpier/status/1130499466769911808
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gokou3

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Re: TOO - Teekay Offshore Partners L.P.
« Reply #242 on: May 20, 2019, 02:40:21 PM »
Could Brookfield pull another GGP / Rouse, i.e. apparently neglecting them for years and then privatize TOO at a trivial premium to market price?

Didn't expect that this happens so soon.. and at a price even lower than the prior day close. 

Also noted that prices have been sliding for the past 2-3 weeks...

Lakesider

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Re: TOO - Teekay Offshore Partners L.P.
« Reply #243 on: May 20, 2019, 09:10:52 PM »
If you bought now for 1.05 your downside is protected, any surprised will be to the upside?

nodnub

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Re: TOO - Teekay Offshore Partners L.P.
« Reply #244 on: May 21, 2019, 02:29:50 AM »
would not the preferred be rated higher and worth more if bam was owner

Maybe.

The par value on the three series of prefs is $365m. That's significant relative to what BAM will pay to takeunder the common units. How optimistic are you that BAM will be motivated to give pref holders fair treatment? Have you read the prospectus for these prefs?  No party involved in this seems to have any fiduciary duty to the pref holders. 

I'm curious to hear thoughts from anyone that has an opinion on these

Spekulatius

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Re: TOO - Teekay Offshore Partners L.P.
« Reply #245 on: May 21, 2019, 04:12:15 AM »
Guy "Big Swiss" Spier making it known via Twitter that's he TOO, isn't pleased with recent developments.

https://twitter.com/GSpier/status/1130499466769911808

Surprised? i guess he hasn’t paid attention. Isn’t this at least the third time that BAM has squeezed out minority investors on the cheap? I can’t recall when BAM paid full price for anything. Value investor 101 - buy low.
Life is too short for cheap beer and wine.

Seth Lowry

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Re: TOO - Teekay Offshore Partners L.P.
« Reply #246 on: May 21, 2019, 04:41:34 AM »
For those interested, we are writing a letter to the TOO conflicts committee and to Brookfield Asset Management.  Governance at BBU is exceptionally bad and off-brand for Brookfield.  Will post a link shortly or email me at seth@jdpcap.com

cornerbrook

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Re: TOO - Teekay Offshore Partners L.P.
« Reply #247 on: May 21, 2019, 05:07:18 AM »
This part of the BBU Q4 2018 letter to unitholders dated "February, 2019" and signed by Cyrus Maddon is interesting:

"Early in 2018, Teekay Offshore completed the last of its growth projects that were underway when we acquired
the business and these new vessels have driven improved financial results. Despite this performance, the public
unit market price for Teekay Offshore decreased during the fourth quarter reflective of, in our estimate, negative
sentiment toward the oil and gas industry. In contrast to much of the oil and gas industry, Teekay Offshore’s
recurring cashflows and EBITDA were stable year over year. Teekay Offshore has limited commodity exposure,
with medium to long term contracts with premium petroleum companies which provide stability of forward
revenues. In 2018 we assisted Teekay Offshore to refinance its near term debt maturities. Teekay Offshore’s
enhanced capital structure, together with its on-going growth projects, position the company well for the years
ahead."

It seems like either BBU was misleading the limited partners then, they are ripping off TOO unitholders now, or there was a big change in TOO's situation. Or maybe some combination of the three. Neither TOO nor BBU have mentioned any such big change, including when reporting and presenting on the Q1 results.

kab60

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Re: TOO - Teekay Offshore Partners L.P.
« Reply #248 on: May 21, 2019, 05:36:55 AM »
After what Oaktree did with Alliance Healthcare Services - and now this - it seems most fitting these guys are joining forces. I'm not invested, can't even say I'm surprised, but I do understand why some would be disappointed in their actions. I wonder if people might have downplayed the risk since everyone seems to be fans of Bruce (I enjoy his writings as well - perhaps less so his actions).

mjm

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Re: TOO - Teekay Offshore Partners L.P.
« Reply #249 on: May 21, 2019, 06:34:15 AM »
would not the preferred be rated higher and worth more if bam was owner

Maybe.

The par value on the three series of prefs is $365m. That's significant relative to what BAM will pay to takeunder the common units. How optimistic are you that BAM will be motivated to give pref holders fair treatment? Have you read the prospectus for these prefs?  No party involved in this seems to have any fiduciary duty to the pref holders. 

I'm curious to hear thoughts from anyone that has an opinion on these

from "B" prospectus

   In the event of any liquidation, dissolution or winding up of our affairs, whether voluntary or involuntary, holders of the Series B Preferred Units will have the right to receive the liquidation preference of $25.00 per unit plus an amount equal to all accumulated and unpaid distributions thereon to the date of payment, whether or not declared, before any payments are made to holders of our common units or any other Junior Securities. A consolidation or merger of us with or into any other entity, individually or in a series of transactions, will not be deemed to be a liquidation, dissolution or winding up of our affairs.

am just a layman in these affairs,  but would also like to hear some opinions from others