KNOT Public Share Offering to Fund Tankship Acquistions
KNOT Offshore Partners says it has entered into agreements to acquire from Knutsen NYK Offshore Tankers AS all of the ownership interests in the companies that own and operate the shuttle tankers 'Hilda Knutsen' and 'Torill Knutsen'. At the same time KNOT announce the public offering of 4,600,000 common share units. The purchase price of the Hilda Knutsen is $166.0 million, net of $109.6 million of outstanding indebtedness related to the vessel. The purchase price of the Torill Knutsen is $169.0 million, net of $112.1 million of outstanding indebtedness related to the vessel. The two shuttle tankers are operating in the North Sea under time charters with Eni Trading & Shipping S.p.A.
KNOT Offshore Charters Out Crude Oil/Shuttle Tankship
KNOT Offshore Partners LP say they have fixed with Brazil Shipping I Limited (an affiliate of BG Group) the time charter of the crude oil/shuttle tanker 'Windsor Knutsen'. The hire rate for the initial term of two years is in line with the rate in the existing charter with BG, which has options to extend the term of the charter for three additional one-year periods. The charter will commence in or around the fourth quarter of 2015. If all three extension options are exercised, the Windsor Knutsen will operate for BG until the end of 2020. The shuttle tanker will operate in Brazil. BG has recently notified the KNOT Partnership that the Windsor Knutsen will be redelivered under its existing charter at the end of July 2014.
