KNOT Shuttle Tankers Acquires Dan Sabia

KNOT Shuttle Tankers AS has entered into a share purchase agreement to acquire KNOT Shuttle Tankers 21 AS, the company that owns the shuttle tanker, Dan Sabia, from Knutsen NYK Offshore Tankers AS.

The purchase price of the acquisition is USD 103 million, net of USD 64.5 million of outstanding indebtedness related to the Dan Sabia.

The acquisition is expected to close within approximately 30 days, subject to customary closing conditions.

The Dan Sabia is operating under a bareboat charter with Petrobras Transporte S.A. The Dan Sabia charter commenced upon delivery of the vessel in the first quarter of 2012 and will terminate in the first quarter of 2024.

As a result of the acquisition, the KNOT Offshore Partners’ management has recommended to the Board an increase in the Partnership’s quarterly cash distribution of between USD 0.01 and USD 0.015 per unit, which would become effective for the distribution with respect to the quarter ending September 30, 2015.