Teekay LNG (TGP) merger closed. Reinvested funds in KKR Real Estate (KREF) & Capital Southwest (CSWC)


On January 13th Teekay LNG completed their merger with Stonpeak and paid out $17.00 per common unit to shareholders.

Teekay Corporation announces the closing of the previously announced merger of Teekay LNG Partners L.P. with investment vehicles managed by Stonepeak. As part of the Merger, Teekay sold all of its ownership interest in Teekay LNG, including approximately 36.0 million Teekay LNG common units, and Teekay GP L.L.C., Teekay LNG’s general partner (equivalent to approximately 1.6 million Teekay LNG common units), for $17.00 per common unit or common unit equivalent in cash, and transferred various management services companies to Teekay LNG that provide the operations for Teekay LNG and certain of its joint ventures under existing management services contracts. As consideration, Teekay received total gross cash proceeds of approximately $641 million.

Teekay Corporation Announces Closing Of Stonepeak’s Acquisition of Teekay LNG (yahoo.com)

I purchased my shares for $14.40/common unit in July of 2021 and received about $400 in dividends last year. All in all that purchase did what I needed. My net gain including dividends was $2,204.00 or 22.01%. Not bad for a five month ride.

I need to reinvest those funds to keep pace with the level of income I need to maintain. I purchased equal dollar amounts of KKR Real Estate (KREF) and Capital Southwest (CSWC). I will do separate posts on each company. Teekay’s yield was 6.8% while KREF and CSWC both are over 7.5%. That will keep the total yield for my High Yield Portfolio close to 7.5% annually.