KNOT Offshore Partners LP completes Initial Public Offering
KNOT Offshore Partners LP (KNOP), which was established by Knutsen NYK Offshore Tankers AS (KNOT; headquarters: Haugesund, Norway; 50:50 JV company formed in 2010 by TS Shipping Invest AS and NYK), announced that it had completed an initial public offering (IPO) of 7,450,000 common units, representing limited partner interests. The successful IPO increases KNOP’s flexibility to finance investment amounts to expand its shuttle tanker business, which is expected to grow rapidly, said in the company's press release.
On April 10, 2013, the common units were offered to the public for trading on the New York Stock Exchange under the symbol "KNOP". The launching price was $21.00 per unit.
KNOP had granted the underwriters the option to purchase up to 1,117,500 additional common units at the same price. Following the completion of the offering, KNOT owns KNOP's general partner and a 49.0% limited partner interest in KNOP after the underwriter's option was exercised in full.
KNOP intends to use the net proceeds from the offering — which are to be approximately USD 160 million after deducting estimated underwriting discounts and commissions, structuring fees, and estimated offering expenses — to repay borrowings outstanding under vessel financing agreements and for general partnership purposes.
BofA Merril Lynch and Citigroup acted as the joint book-running managers in the transaction.
Knutsen and the NYK Group will continue their efforts to provide stable and economical energy-transport services.
