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Knot Offshore Partners Buys Hedda Knutsen for $24.4 Million, Refinances $225 Million

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Knot Offshore Partners agreed to acquire the Hedda Knutsen for $24.4 million and completed a $225 million refinancing, strengthening its shuttle tanker portfolio and debt structure, the company said Wednesday.

Knot's wholly owned Knot Shuttle Tankers will acquire Knutsen Canadian Chartering, which owns the Hedda Knutsen, for $113 million, while assuming $89.4 million in outstanding debt.

The transaction also includes $800,000 in capitalized credit facility fees, bringing the initial acquisition cost to about $24.4 million, subject to customary working capital adjustments.

Built by COSCO Shipping Heavy Industry and delivered in 2024, the Hedda Knutsen is a 154,000-deadweight-ton DP2 Suezmax shuttle tanker operating in Brazil.

The vessel serves Petrobras (PBR) under a time charter with a fixed term through November 2034, with an option to extend the charter for another five years.

The board of directors and independent conflicts committee approved the acquisition, with an outside independent financial adviser and legal counsel supporting their review.

On Aug. 7, Knot subsidiaries that own the Tordis Knutsen, Ametista Brazil, Lena Knutsen, Anna Knutsen, and Brasil Knutsen signed a $225 million senior secured credit facility.

Knot's new facility carries a 1.65% interest margin, includes 20 consecutive quarterly repayments and has a $111.1 million balloon payment due at maturity in June 2031.

Price: $17.94, Change: $+0.08, Percent Change: +0.48%

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