KNOT Offshore Partners LP (the “Partnership”) (NYSE:KNOP) announced
today that its wholly owned subsidiary, KNOT Shuttle Tankers AS, had
entered into a share purchase agreement to acquire KNOT Shuttle Tankers
21 AS, the company that owns the shuttle tanker, Dan Sabia, from
Knutsen NYK Offshore Tankers AS (the “Acquisition”). The purchase
price of the Acquisition is $103.0 million, net of $64.5 million of
outstanding indebtedness related to the Dan Sabia. The
Partnership expects the Acquisition to close within approximately 30
days, subject to customary closing conditions.
The Dan Sabia is operating under a bareboat charter with
Petrobras Transporte S.A. The Dan Sabia charter commenced upon
delivery of the vessel in the first quarter of 2012 and will terminate
in the first quarter of 2024.
The Partnership’s board of directors (the “Board”) is pleased that the
Partnership has entered into this share purchase agreement in connection
with its fifth acquisition since the Partnership’s initial public
offering in April 2013.
The Board and the conflicts committee of the Board (the “Conflicts
Committee”) have approved the purchase price of the Acquisition. The
Conflicts Committee retained an outside financial advisor to assist with
its evaluation of the Acquisition.
As a result of the Acquisition, the Partnership’s management has
recommended to the Board an increase in the Partnership’s quarterly cash
distribution of between $0.01 and $0.015 per unit (corresponding to an
annualized increase of between $0.04 and $0.06 per unit), which would
become effective for the distribution with respect to the quarter ending
September 30, 2015. Any such increase would be conditioned upon, among
other things, the closing of the Acquisition, the approval of such
increase by the Board and the absence of any material adverse
developments or potentially attractive opportunities that would make
such an increase inadvisable.
The Partnership owns, operates and acquires shuttle tankers under
long-term charters in the 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 consummate the Acquisition on a timely
basis or at all, and to integrate and realize the expected benefits
from the Acquisition;
-
the Partnership’s ability to increase distributions to unitholders and
the amount of any such increase;
-
the Partnership’s ability to implement its growth strategies and other
plans and objectives for future operations;
-
the Partnership’s future revenues, expenses, financial condition and
results of operations;
-
the financial condition of the Partnership’s existing or future
customers and their ability to fulfill their charter obligations;
-
the Partnership’s ability to make additional borrowings and to access
debt and equity markets; 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.
Source: KNOT Offshore Partners LP
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