KNOT Offshore Partners closes IPO

The company's initial fleet will be supplied by Knutsen NYK Offshore Tankers (KNOT) which is jointly owned by TS Shipping Invest (TSSI) and Nippon Yusen Kaisha (NYK), with KNOT owning a 2% general partner interest in KOP, all of its incentive distribution rights and a 55.4% limited partner interest in the new shuttle tanker outfit.

KOP will operate shuttle tankers on five year plus charters with oil majors such as BG Group, Statoil and Transpetro, with a view to further strategic acquisitions of shuttle tankers through exercising their right to purchase from KNOT any newbuilding or existing shuttle tanker entering a long term charter agreement of five or more years.

"We will have the right to purchase the newbuild shuttle tanker the Carmen Knutsen within 24 months after the closing of the initial public offering and will have the right to purchase four additional newbuild shuttle tankers, Hull 2531, Hull 2532, Hull 2575 and Hull 574, from KNOT within 24 months after KNOT notifies our board of directors of each vessel's respective acceptances by their charterers," the company's website said.

At the time of writing, shares in KNOT were trading at $23.40.