Teekay LNG Partners (TGP) has disclosed a new risk, in the Debt & Financing category.
Teekay LNG Partners’ issuance of Series A and Series B Preferred Units presents a notable financial risk for investors, as these securities do not obligate the company to repay a principal amount on a specific date. This indefinite duration of investment places a burden on preferred unit holders to endure the volatility and financial risks associated with long-term equity positions. Furthermore, these preferred units are subordinate to all of Teekay LNG Partners’ debt and other liabilities, and they will also rank beneath any senior securities the company may issue in the future, potentially diminishing the assets available for claims by preferred unit holders.
Overall, Wall Street has a Hold consensus rating on TGP stock based on 1 Hold.
To learn more about Teekay LNG Partners’ risk factors, click here.
