KNOT Offshore Partners LP (NYSE: KNOP) lately reported that its entirely had subsidiary, KNOT Shuttle Tankers AS, has actually consented to obtain KNOT Shuttle Tankers 34 AS, the firm that has the shuttle bus vessel, Tove Knutsen, from Knutsen NYK Offshore Tankers AS. The acquisition rate of the Acquisition is $117.8 million, much less $93.1 numerous impressive debt and also will certainly be funded on a non-dilutive basis utilizing cash money available and also loanings under KNOP’s existing rotating credit rating center.
The Tove Knutsen is a 153,000 dwt DP2 Suezmax course shuttle bus vessel, constructed by shipbuilder Hyundai Heavy Industries and also supplied in September 2020. The vessel is running in Brazil under a seven-year time charter with Equinor Shipping Inc., giving fixed-rate company work with to at the very least the 4th quarter of 2027. The charterer has choices to more expand the charter for as much as 13 extra years. On closing, the Tove Knutsen will certainly come to be the collaboration’s seventeenth vessel.
The purchase is anticipated to nearby December 31, 2020, based on traditional closing problems.
New $25 million rotating credit rating center
The collaboration additionally revealed that it has actually participated in a brand-new $25 million rotating credit rating center with Shinsei Bank,Limited The center will certainly be readily available to the collaboration up until November 2023 and also can be pre-payed at any moment. The margin payable on the center is less than the collaboration’s existing ordinary margin of 2.1% over LIBOR.
Outlook
Gary Chapman, Chief Executive Officer of the collaboration, commented, “We are pleased to return to growth with a dropdown that materially strengthens KNOP’s long-term contract coverage and provides a further layer of stability and support for our consistent distribution without diluting our existing equity. The cashflow from this newly acquired vessel provides significant forward visibility and will help support distribution coverage for our unitholders in the years ahead. We are also proud to welcome Shinsei Bank to our lender group, further diversifying our access to capital with the addition of another leading Japanese financial institution.”
