Knot Offshore Partners (KNOP) is to repurchase up to 666,667 of its common units in a share buy-back scheme.
KNOP’s general partner, Knot Offshore Partners GP, has been authorised by its board of directors to purchase 333,333 common units in the NYSE-listed master limited partnership, which owns, operates and acquires shuttle tankers under long-term charters in offshore oil fields in the North Sea and Brazil.
The common units will sold at ‘prevailing’ prices on the open market or in privately negotiated transactions, and will be allocated two-thirds to the partnership and one-third to its general partner, KNOP said.
The parties have no obligation to purchase any number of shares in the programme, which will conclude by August 31, 2016.
“The partnership has a good liquidity position, and in light of recent and potentially persisting market conditions and the current yield of approximately 14.5% on the common units, the partnership believes the purchase programme is an attractive investment opportunity,” KNOP said in a statement today.