Knot Offshore Partners has completed its acquisition of the ownership interests in the company that owns and operates the shuttle tanker Tordis Knutsen.
In a transaction that involves several companies, Knot Shuttle Tankers AS, a subsidiary of Knot Offshore Partners, has entered into a purchase agreement to acquire Knot 24, the company that owns the 2016-built shuttle tanker Tordis Knutsen, from Knutsen NYK.
Knot said on Wednesday that the acquisition was completed for an aggregate purchase price of $147 million less $137.5 million of outstanding indebtedness plus approximately $21.1 million for a receivable owed by Knutsen NYK Offshore to KNOT 24.
Also included in the deal is $0.8 million for certain capitalized fees related to the financing of the Tordis Knutsen.
On the closing of the acquisition, Knot 24 repaid approximately $42.8 million of the indebtedness, leaving an aggregate of approximately $94.9 million of debt outstanding under the secured credit facility related to the vessel.
The purchase price was settled in cash and will be subject to certain post-closing adjustments for working capital and interest rate swaps. On the closing of the acquisition, Knutsen NYK repaid Knot 24 in full.
The Tordis Knutsen is a 156,559-deadweight ton shuttle tanker, built by Hyundai Heavy Industries in Korea and delivered in November 2016. The vessel is operating in Brazil under a five-year time charter with a subsidiary of Royal Dutch Shell, which will expire in the first quarter of 2022. The charterer has options to extend the charter for two five-year periods.
Including the Tordis Knutsen, Knot Offshore now has a fleet of twelve vessels with an average age of 4.5 years and a fixed average employment of 4.9 years.