KNOT Offshore Partners’ wholly owned subsidiary KNOT Shuttle Tankers has concluded the previously announced purchase of ownership interests in KNOT Shuttle Tankers 30 (KNOT 30) from Knutsen NYK Offshore Tankers (Knutsen NYK) for $120m.
KNOT 30 currently owns and operates a shuttle tanker known as Anna Knutsen.
The total value of the acquisition includes $106.8m of outstanding debt under the secured credit facility related to the Anna Facility vessel.
It also includes $1.4m for various capitalised fees associated with the financing of Anna Knutsen.
Anna Knutsen is a DP2 Suexmax-class shuttle tanker that was originally delivered in March last year.
It is currently being deployed in Brazil under a time charter contract with Galp Sinopec Brazil Services.
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The charter includes options to extend for a further two three-year periods and is set to expire in the second quarter of 2022.
The newly completed deal is based on a share purchase agreement that was initially signed between KNOT Shuttle Tankers and Knutsen NYK last month.
KNOT 30 repaid around $32.4m of its debt in accordance with the agreement during the deal’s closing, thereby leaving a total outstanding sum of roughly $74.4m under Anna Facility’s secured credit facility.
The purchase price for Anna Facility can be repaid in quarterly instalments with a final balloon payment of $57.1m, which is due at maturity in March 2022.
The price is set to be paid in cash and will be subject to certain post-closing adjustments for working capital and interest rate swaps (IRS).
KNOT Offshore Partners is primarily engaged in the ownership, operation and acquisition of shuttle tankers under long-term charters in the deepwater, offshore oil-producing regions of the North Sea and Brazil.