KNOP buys two more shuttle tankers from KNOT

JUNE 24, 2014 — KNOT Offshore Partners LP (NYSE:KNOP) says that it has entered into agreements to acquire from its majority owner, Knutsen NYK Offshore Tankers AS (NYSE:KNOT) all of the ownership interests in the companies that own and operate the shuttle tankers Hilda Knutsen and Torill Knutsen. 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 partnership said that it expects to fund the cash portion of the purchase prices by issuing equity. The Partnership expects the acquisitions to close within approximately 30 days, subject to customary closing conditions.

The two ships are operating in the North Sea under time charters with Eni Trading & Shipping S.p.A.