ABERDEEN, Scotland--(BUSINESS WIRE)--
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 symbol “KNOP.”
Source: KNOT Offshore Partners LP

Source: KNOT Offshore Partners LP