•  
  •  
  •  
  •  
  •  
  • Untitled Document
    Untitled Document

    KNOT Offshore Partners raises $156M in IPO

    KNOT Offshore Partners, the world’s second largest owner of shuttle tankers for the offshore oil and gas industry, recently completed its initial public offering (IPO).

    The Aberdeen, UK-based company that owns shuttle tankers under long-term charters (5 years or more) raised $156 million by offering 7.45 million shares at $21. The company is listed on the NYSE under the ticker symbol KNOP. BofA Merrill Lynch, Citi and Barclays acted as lead managers on the deal.

    Arild Vik serves as the company’s CEO and CFO.

    KNOT Offshore Partners LP focuses on owning, acquiring, and operating shuttle tankers. It intends to transport crude oil through its vessels.

    The initial fleet of shuttle tankers will be contributed by Knutsen NYK Offshore Tankers AS, or KNOT, which is jointly owned by TS Shipping Invest AS, and Nippon Yusen Kaisha.

    Upon the closing of the offering, KNOT Offshore Partners will have a modern fleet of shuttle tankers that will operate under long-term charters with major oil and gas companies engaged in offshore production such as BG Group, Statoil and Transpetro.

    The company expects to use approximately $121.9 million of the net proceeds from the IPO to:

    • repay approximately $34.8 million of borrowings under the $160 million senior secured loan facility;
    • repay approximately $9.6 million of borrowings under the $19 million junior secured loan facility;
    • repay approximately $52.1 million of borrowings under the $120 million senior secured loan facility, or the Bodil Facility;
    • repay all of our borrowings outstanding (approximately $22.4 million) under the $27.3 million junior secured loan facility, or the Windsor Conversion Facility; and
    • to pre-fund approximately $3.0 million of our one-time entrance tax into the Norwegian tonnage tax regime.

    It will use the remainder of the net proceeds for general partnership purposes.

    With 22 shuttle tankers (including the vessels in its initial fleet) and four newbuilds on order as of March 15, 2013, KNOT is the second largest owner of shuttle tankers behind Teekay Offshore Partners LP.

    Related Articles

    BridgeTex Pipeline extends open season

    08/11/2014 Magellan Midstream Partners LP and Occidental Petroleum Corp. report that BridgeTex Pipeline has extended its supplemental open season for additional transportation commitments on the pipeline. Bin...

    Kinder Morgan to Expand Edmonton Terminal

    08/08/2014 Kinder Morgan reports that its joint venture has entered into additional firm take or pay agreements with oil majors sufficient to allow a planned expansion project to move forward by adding increm...

    BKEP to build Pipeline Project to Serve Eaglebine Crude Producers

    08/07/2014 Blueknight Energy Partners LP plans to build a major pipeline linking the emerging East Texas Eaglebine/Woodbine crude oil resource play to Oiltanking Houston, a crude oil and product terminal on t...

    Regency and AE-MIDCO Enter Into Joint Venture

    08/07/2014 Regency Energy Partners LP and American Energy – Midstream LLC (AE-MidCo) have entered into a joint venture agreement for the construction and operation of Regency’s previously announced Utica Ohio...

    KMP expanding Kinder Morgan crude and condensate system

    08/05/2014 Kinder Morgan Energy Partners LP will invest $54 million to build an interconnect and other facilities for its Kinder Morgan Crude and Condensate (KMCC) pipeline after entering into a long-term tra...

    More Oil & Gas Financial Articles

    BridgeTex Pipeline extends open season

    Mon, Aug 11, 2014

    Magellan Midstream Partners LP and Occidental Petroleum Corp. report that BridgeTex Pipeline has extended its supplemental open season for additional transportation commitments on the pipeline. Binding commitments are now due by 5 p.m. Central Time on Aug. 14.

    Kinder Morgan to Expand Edmonton Terminal

    Fri, Aug 8, 2014

    Kinder Morgan reports that its joint venture has entered into additional firm take or pay agreements with oil majors sufficient to allow a planned expansion project to move forward by adding incremental capacity of 110,000 barrels per day at the Edmonton Rail Terminal.

    BKEP to build Pipeline Project to Serve Eaglebine Crude Producers

    Thu, Aug 7, 2014

    Blueknight Energy Partners LP plans to build a major pipeline linking the emerging East Texas Eaglebine/Woodbine crude oil resource play to Oiltanking Houston, a crude oil and product terminal on the Houston Ship Channel, owned and operated by Oiltanking Partners LP.

    Regency and AE-MIDCO Enter Into Joint Venture

    Thu, Aug 7, 2014

    Regency Energy Partners LP and American Energy – Midstream LLC (AE-MidCo) have entered into a joint venture agreement for the construction and operation of Regency’s previously announced Utica Ohio River Project.

    KMP expanding Kinder Morgan crude and condensate system

    Tue, Aug 5, 2014

    Kinder Morgan Energy Partners LP will invest $54 million to build an interconnect and other facilities for its Kinder Morgan Crude and Condensate (KMCC) pipeline after entering into a long-term transportation agreement with Republic Midstream Marketing LLC.

    Most Popular

    Oil & Gas Jobs

    Search More Job Listings >>
    Subscribe to OGFJ