KNOT Offshore Partners LP announces completion of the acquisition of Hilda
Knutsen and Torill Knutsen
ABERDEEN, Scotland -- July 1, 2014
KNOT Offshore Partners LP (the "Partnership") (NYSE: KNOP) announced today
that it has completed its acquisition of all the ownership interests in the
companies that own and operate the shuttle tankers Hilda Knutsen and Torill
Knutsen. The purchase price of the Hilda Knutsen was $166.0 million, net of
$109.6 million of outstanding indebtedness related to the vessel, subject to
post-closing adjustments. The purchase price of the Torill Knutsen was $169.0
million, net of $112.1 million of outstanding indebtedness related to the
vessel, subject to post-closing adjustments. The cash portion of the purchase
prices was financed with proceeds from the Partnership’s public offering of
4,600,000 common units which closed on June 27, 2014.
Each of the Hilda Knutsen and the Torill Knutsen is operating in the North Sea
under time charters (the “Hilda Charter” and the “Torill Charter,” together,
the “Hilda and Torill Charters”) with Eni Trading & Shipping S.p.A. (“Eni”).
The Hilda and Torill Charters commenced upon delivery of the Hilda Knutsen and
the Torill Knutsen in the third quarter of 2013 and each will terminate five
years after delivery. Eni has options to extend each of the charters for up to
five one-year periods. In the case of the Torill Charter, Eni has the option,
at any time before May 31, 2016, to extend the charter term to ten years in
exchange for a reduction in the hire rate.
The Partnership owns, operates and acquires shuttle tankers under long-term
charters in the offshore oil production regions of the North Sea and Brazil.
The Partnership is structured as a master limited partnership. The
Partnership’s common units trade on the New York Stock Exchange under the
Source: KNOT Offshore Partners LP
KNOT Offshore Partners LP
Chief Executive Officer and Chief Financial Officer
+44758 1899 777
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