KNOT Offshore Partners LP announces acquisition of Tove Knutsen

Dec 17 2020

KNOT Offshore Partners LP (the “Partnership”) announced that its wholly owned subsidiary, KNOT Shuttle Tankers AS, has agreed to acquire KNOT Shuttle Tankers 34 AS, the company that owns the shuttle tanker, Tove Knutsen, from Knutsen NYK Offshore Tankers AS (“KNOT”) (the “Acquisition”).

The purchase price of the Acquisition is $117.8 million, less $93.1 million of outstanding indebtedness and will be financed on a non-dilutive basis using cash on hand and borrowings under KNOP’s existing revolving credit facility.

The Tove Knutsen is a 153,000-deadweight ton DP2 Suezmax class shuttle tanker, built by Hyundai Heavy Industries and delivered in September 2020. The vessel is operating in Brazil under a seven-year time charter with Equinor Shipping Inc., providing fixed-rate firm employment through to at least the fourth quarter of 2027. The charterer has options to further extend the charter for up to 13 additional years. On closing, the Tove Knutsen will become the Partnership’s seventeenth vessel.

The Acquisition was approved by the Partnership’s Board and independent Conflicts Committee (who were supported by an outside independent financial advisor), and the Acquisition is expected to close by December 31, 2020, subject to customary closing conditions.


New $25 Million Revolving Credit Facility

The Partnership also announced that it has entered into a new $25 million revolving credit facility (the “Facility”) with Shinsei Bank, Limited. The Facility will be available to the Partnership until November 2023 and can be prepaid at any time. The margin payable on the Facility is lower than the Partnership’s current average margin of 2.1% over LIBOR.



Gary Chapman, CEO of the Partnership, commented, “We are pleased to return to growth with a dropdown that materially strengthens KNOP’s long-term contract coverage and provides a further layer of stability and support for our consistent distribution without diluting our existing equity. The cashflow from this newly acquired vessel provides significant forward visibility and will help support distribution coverage for our unitholders in the years ahead. We are also proud to welcome Shinsei Bank to our lender group, further diversifying our access to capital with the addition of another leading Japanese financial institution.”

“Beyond our recent Q3 earnings release we have no further developments to report on the Windsor Knutsen or the Bodil Knutsen, with the current firm charter on the Bodil Knutsen running to around May 2021. Looking forward, with visibility on large, multi-year oil major capex commitments principally in offshore Brazil and the North Sea, a global orderbook for new shuttle tankers that is fully contracted and high barriers to entry for any potential new competitors, we believe that the Partnership is well positioned to benefit from the long-term growth prospects in this niche market segment where KNOP and our sponsor, KNOT, are together the market leader.”  

Related News

$15.2m Investment in a Chemical Tanker

(Jan 14 2021)

The Board of Tufton Oceanic Assets Limited is pleased to announce that the Company has acquired a stainless steel Chemical Tanker for $15.2m.

New Fortress Energy to acquire Golar LNG Partners LP

(Jan 14 2021)

Golar LNG Partners LP announced that it has entered into an agreement and plan of merger with New Fortress Energy Inc.

Performance Shipping Inc. announces delivery of its fifth Aframax tanker, M/T P. Yanbu

(Dec 17 2020)

Performance Shipping Inc., (the “Company”), a global shipping company specializing in the ownership of tankers, announced that in Manila, Philippines, it has taken delivery of the M/T P. Yanbu (formerly “Kalamas”), a 2011-built 105,400 dwt Aframax ta...

WL Ross & Co. announces agreement to sell its equity interest in Navigator Holdings to BW Group

(Dec 17 2020)

WL Ross & Co. LLC ("WL Ross") announced that it has agreed to sell, on behalf of funds managed by WL Ross, their approximately 39.1% equity interest in Navigator Holdings Ltd. ("Navigator Holding") to BW Group Limited ("BW Group") at a price of $9.00...

Maersk Tankers continues growth by adding four Xihe-owned tankers to its pools

(Dec 10 2020)

Maersk Tankers has entered a commercial agreement that sees it take over the running of four product tankers owned by Xihe Holdings (Xihe).

Nov-Dec 2020

Shipping post COVID - practicality of decarbonisation - Hafnia and vessel performance