KNOT Offshore Partners To Acquire 2022-Built DP2 Shuttle Tanker Daqing Knutsen From KNOT For $95M Less Debt; Net Consideration ~$24.8M

Author: Benzinga Newsdesk | July 02, 2025 09:09am

• Partnership to acquire 2022-built DP2 Suezmax shuttle tanker Daqing Knutsen
• Sale & leaseback of Tove Knutsen expected to release approximately $32 million of proceeds
• Partnership is establishing a $10 million common unit buyback program

KNOT Offshore Partners LP (NYSE:KNOP) ("The Partnership") today provided a strategic and operational update on a number of developments involving fleet expansion, chartering, refinancing, and a common unit buyback program.

In addition to the updates related to ongoing operations and additional detail provided later in this announcement, key developments include the following:

• The outstanding debt of the Tove Knutsen is expected to be refinanced by means of a sale & leaseback transaction, which would generate approximately $32 million of proceeds;
• The Partnership has agreed to acquire the 2022-built DP2 shuttle tanker Daqing Knutsen (the "Acquisition") from Knutsen NYK Offshore Tankers AS ("KNOT"). The purchase price is $95 million, less $70.5 million of outstanding indebtedness, plus $0.3 million of capitalized fees related to the credit facility secured by the Daqing Knutsen and subject to customary post-closing adjustments for working capital. The vessel is on time charter to PetroChina in Brazil through July 2027. As a term of the Acquisition, KNOT has guaranteed the hire rate for the vessel until 2032 on the same basis as if PetroChina had exercised its option through such date;
• In recognition of the value proposition represented by the prevailing market valuation of the Partnership's common units, KNOP is establishing a $10 million common unit buyback program; and
• The Partnership's quarterly distribution for 2Q 2025 has been maintained at $0.026 per common unit.

Posted In: KNOP