A new $15m revolving credit facility has been added to KNOT Offshore Partners’ original $240m senior syndicated secured loan facility, which is secured against three of the company’s shuttle tankers.
The new revolving credit facility matures in June 2019 and bears interest at LIBOR plus a fixed margin of 2.5%, according to the NYSE-listed company’s financial results for the second quarter 2016.
It brings KNOT’s total revolving credit commitments under the senior secured facility to $35m.
The amended loan has been secured against KNOT’s suezmax shuttle tankers Windsor Knutsen (162,400 dwt, built 2007), Bodil Knutsen (157,600 dwt, built 2011; pictured) and Carmen Knutsen (157,000 dwt, built 2013) and was agreed with their respective vessel holding companies.
Meanwhile, KNOT isn’t ruling out further vessel acquisitions and has options to buy additional vessels from its sponsor company Knutsen NYK Offshore Tankers.
“The board believes that there may be opportunities for growth of the partnership, which may include current identified acquisition candidates, and that the demand for offshore shuttle tankers will continue to grow over time based on identified projects. Future developments will influenced by the rate of growth of offshore oil production activities when the existing projects are completed,” the company noted in its Q2 report.
KNOT has options to acquire up to five vessels controlled by Knutsen NYK, after having signed an omnibus agreement with the sponsor at the time of its initial public offering.
Under the same agreement, it also has the option to buy any offshore shuttle tankers that Knutsen NYK acquires or owns that are employed under charters for periods of five or more years.