KNOT Offshore Partners acquires Hedda Knutsen and refinances $225 million

KNOT Offshore Partners LP, through its subsidiary KNOT Shuttle Tankers AS, has agreed to acquire Knutsen Canadian Chartering AS. The acquisition includes the Hedda Knutsen, a 154,000-deadweight ton DP2 Suezmax class shuttle tanker delivered in 2024. The purchase price is $113.0 million, minus $89.4 million in outstanding indebtedness and $0.8 million in capitalized fees, resulting in an initial cost of approximately $24.4 million.

The Hedda Knutsen is currently operating in Brazil under a time charter with Petrobras. The existing fixed period for this charter is set to expire in November 2034, with an option for a five-year extension.

Additionally, KNOT Offshore Partners completed a $225 million senior secured credit facility to refinance existing term loans for five vessels: the Tordis Knutsen, Vigdis Knutsen (also known as Ametista Brazil), Lena Knutsen, Anna Knutsen, and Brasil Knutsen. DNB Bank ASA acted as the agent for the lenders. The new facility features interest rates based on SOFR plus a 1.65% margin, with a balloon payment of $111.1 million due in June 2031.