Terms

Series

9.00% Series A Cumulative Redeemable Perpetual Preferred Units

Liquidation Preference

$25.00

Coupon Rate

9%

Rate Type

Fixed

Annual Dividend

$2.25

Payment Frequency

Quarterly

Cumulative

Yes

Perpetual

Yes

Convertible

No

Callable

Yes

First Call Date

October 5, 2021

First Call Price

$25.00

Redemption Notice Period

30 days

Capital Stack Ranking

Junior To: All Indebtedness And Other Liabilities, Senior Securities (Any Equity Class Expressly Senior); Pari Passu With: Parity Securities (Any Equity Class Expressly Ranking On Parity); Senior To: Common Units, Junior Securities (Any Equity Class Not Expressly Pari Passu Or Senior)

Regulatory (Basel III) Call

No

Tax Classification

Other

Qualifies for QDI

No

Qualifies for DRD

No

Shares Offered

5,000,000

Prospectus Summary

Teekay LNG Partners L.P. (NYSE: TGP), a Marshall Islands-domiciled MLP and one of the world's largest independent LNG/LPG carrier owners, is offering 5,000,000 Series A Cumulative Redeemable Perpetual Preferred Units at a liquidation preference of $25.00 per unit, paying a fixed 9.00% per annum ($2.25/unit annually, $0.5625/unit quarterly). The units are callable at par on or after October 5, 2021. Crucially, these are cumulative preferred units — if Teekay LNG Partners misses or reduces a distribution, all arrears must be paid in full before any distribution can be made to common unitholders, providing meaningful backstop protection for preferred holders. The Series A Preferred Units sit above common units and any future junior equity in the capital stack, but are expressly subordinate to all of Teekay LNG Partners' debt and other liabilities. As a limited partnership operating through subsidiaries, there is structural subordination risk: the partnership's preferred unitholders have no direct claim on subsidiary assets, which are first available to satisfy subsidiary-level creditors. There is no regulatory capital call provision, as the issuer is an MLP rather than a regulated financial institution. If distributions fall into arrears for six or more quarterly periods, preferred holders gain the right to elect one director to the general partner's board — a limited but meaningful governance remedy. At a $25.00 purchase price, the Series A Preferred Units yield exactly 9.00% annually, with distributions paid on January 15, April 15, July 15, and October 15 (record date: last business day of the prior month). Importantly, because Teekay LNG Partners is a non-U.S. MLP (Marshall Islands), distributions are treated as guaranteed payments for the use of capital rather than qualified dividends — they do not qualify for the preferential 15%/20% QDI rate for individual investors or the dividends-received deduction for corporate holders. U.S. investors should expect ordinary income treatment and should review MLP-specific tax considerations carefully. Distributions on common units may be blocked while preferred distributions are in arrears.

Summarized from the SEC prospectus filing.

Distribution History

Ranking vs. Other Preferreds

Dividend Stopper Provisions

Dividend Stopper Description

Distributions on the Series A Preferred Units are cumulative; if in arrears for six or more quarterly periods, holders gain board representation rights. Additionally, while distributions are in arrears, the partnership cannot issue parity securities without two-thirds holder approval.

Div Score Breakdown

Reinvesty's multi-factor safety analysis for this preferred, composite score: 53 (Average)