The purchase is being done through the wholly-owned subsidiary of KNOT Offshore Partners, KNOT Shuttle Tankers.

The transaction purchase price is $117.8 million, less outstanding debt of $93.1 million and will be funded on a non-dilutive basis using cash on hand and borrowings under the current revolving credit facility of KNOP.

The Tove Knutsen, built by Hyundai Heavy Industries and delivered in September 2020, is a 153,000-deadweight DP2 Suezmax class shuttle tanker.

Under a seven-year charter with Equinor Shipping, the vessel operates in Brazil, offering fixed-rate firm jobs until at least the fourth quarter of 2027.

There are options for the charterer to further extend the charter for up to 13 additional years. The Tove Knutsen will become the seventeenth vessel of the Partnership upon closure.

Subject to customary closing conditions, the acquisition is scheduled to close by 31 December 2020.

KNOT Offshore, with Shinsei Bank, Limited, has also entered into a new $25 million revolving credit facility. Until November 2023, the facility will be open to the firm and can be prepaid at any time.

“The cashflow from this newly acquired vessel provides significant forward visibility and will help support distribution coverage for our unitholders in the years ahead," stated Gary Chapman, CEO of the Partnership.

Maritime Business World