KNOT Offshore announced the deal to buy the shuttle tanker back in August this year.
The acquisition was done for an aggregate purchase price of $142 million less $133.8 million of outstanding indebtedness plus approximately $24.1 million for a receivable owed by Knutsen NYK to KNOT 26 and approximately $1 million for certain capitalized fees related to the financing of the Lena Knutsen.
On the closing of the acquisition, KNOT 26 repaid approximately $41.9 million of the indebtedness, leaving an aggregate of approximately $91.9 million of debt outstanding under the secured credit facility related to the vessel. The purchase price was settled in cash and will be subject to certain post-closing adjustments for working capital and interest rate swaps. On the closing of the acquisition, Knutsen NYK repaid the receivable in full.
The Lena Knutsen is an 156,559-deadweight ton shuttle tanker, built by Hyundai Heavy Industries in Korea and delivered in June 2017. The vessel is operating in the Brazil under a five-year time charter with a subsidiary of Royal Dutch Shell, which will expire in the expire third quarter of 2022. The charterer has options to extend the charter for two five-year periods.
Including the Lena Knutsen, the partnership now has a fleet of fourteen vessels with an average age of 4.5 years and a fixed average employment of 4.4 years.