ABERDEEN, Scotland--(BUSINESS WIRE)--
KNOT Offshore Partners LP (the “Partnership”) (NYSE:KNOP) announced
today that its wholly owned subsidiary, KNOT Shuttle Tankers AS, has
acquired (the “Acquisition”) all of the ownership interests in KNOT
Shuttle Tankers 32 AS (“KNOT 32”), the company that owns and operates
the shuttle tanker Brasil Knutsen, from Knutsen NYK Offshore
Tankers AS (“Knutsen NYK”) for an aggregate purchase price of $96.0
million, less $59.0 million of outstanding indebtedness under the
secured credit facility related to the vessel (the “Brasil Facility”),
less approximately $35.2 million for a loan owed by KNOT 32 to Knutsen
NYK (the “Company Liquidity Loan”), plus certain capitalized fees
related to the financing of the Brasil Knutsen. Upon closing of
the Acquisition, KNOT 32 repaid the Company Liquidity Loan in full.
The purchase price was settled by way of a cash payment of approximately
$3.1 million, and will be subject to certain post-closing adjustments
for working capital and interest and currency fluctuation on the Company
Liquidity Loan.
The Brasil Facility is repayable in quarterly installments with a final
balloon payment of $41.0 million due at maturity in July 2022. The
Brasil Facility bears interest at an annual rate equal to LIBOR plus a
margin of 2.3%.
The Brasil Knutsen is a 153,684-deadweight ton DP2 Suezmax
class shuttle tanker, built by Samsung Heavy Industries in Korea and
delivered in May 2013. The vessel is operating in Brazil under a time
charter with Galp Sinopec Brazil Services B.V., which will expire in the
third quarter of 2022. The charterer has options to extend the charter
for two three-year periods.
The Board of Directors of the Partnership (the “Board”) and the
Conflicts Committee of the Board approved the purchase price and terms
of the Acquisition. The Conflicts Committee retained an outside
financial advisor to assist with its evaluation of the Acquisition.
About KNOT Offshore Partners LP
The Partnership owns, operates and acquires shuttle tankers under
long-term charters in the deep-water 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.”
Forward-Looking Statements
This press release contains certain forward-looking statements
concerning future events and the Partnership’s operations, performance
and financial condition. Forward-looking statements include, without
limitation, any statement that may predict, forecast, indicate or imply
future results, performance or achievements, and may contain the words
“believe,” “anticipate,” “expect,” “estimate,” “project,” “will be,”
“will continue,” “will likely result,” “plan,” “intend” or words or
phrases of similar meanings. These statements involve known and unknown
risks and are based upon a number of assumptions and estimates that are
inherently subject to significant uncertainties and contingencies, many
of which are beyond the Partnership’s control. Actual results may differ
materially from those expressed or implied by such forward-looking
statements. Important factors that could cause actual results to differ
materially include, but are not limited to:
-
the Partnership’s ability to integrate and realize the expected
benefits from acquisitions, including the acquisition of KNOT 32;
-
shuttle tanker market trends, including hire rates and factors
affecting supply and demand;
-
the Partnership’s ability to implement its growth strategies on a
timely basis or at all and other plans and objectives for future
operations;
-
the Partnership’s future revenues, expenses, financial condition and
results of operations;
-
the Partnership’s ability to make additional borrowings and to access
debt and equity markets;
-
charter commencement and termination dates and extensions of charters;
and
-
other factors listed from time to time in the reports and other
documents the Partnership files with the United States Securities and
Exchange Commission.
All forward-looking statements included in this release are made only as
of the date of this release. New factors emerge from time to time, and
it is not possible for the Partnership to predict all of these factors.
Further, the Partnership cannot assess the impact of each such factor on
its business or the extent to which any factor, or combination of
factors, may cause actual results to be materially different from those
contained in any forward-looking statement. The Partnership does not
intend to release publicly any updates or revisions to any
forward-looking statements contained herein to reflect any change in the
Partnership’s expectations with respect thereto or any change in events,
conditions or circumstances on which any such statement is based.

View source version on businesswire.com: http://www.businesswire.com/news/home/20171215005774/en/
Source: Knot Offshore Partners