KNOT Offshore acquires Hedda Knutsen owner for $24.4M
KNOT Offshore Partners LP (KNOP) reports that its subsidiary KNOT Shuttle Tankers AS has agreed to acquire Knutsen Canadian Chartering AS, owner of the shuttle tanker Hedda Knutsen, from Knutsen NYK Offshore Tankers AS.
Rhea-AI Filing Summary
KNOT Offshore Partners LP (KNOP) reports that its subsidiary KNOT Shuttle Tankers AS has agreed to acquire Knutsen Canadian Chartering AS, owner of the shuttle tanker Hedda Knutsen, from Knutsen NYK Offshore Tankers AS. The purchase price is $113.0 million, less $89.4 million of outstanding indebtedness, plus $0.8 million of capitalized fees, resulting in an initial Acquisition cost of approximately $24.4 million, subject to customary working capital adjustments.
The 154,000-deadweight ton DP2 Suezmax class shuttle tanker operates in Brazil on a time charter with Petrobras through November 2034, with a 5-year extension option held by the charterer. KNOP subsidiaries also entered into a new $225 million senior secured credit facility on August 7, 2026 to refinance $225.8 million of existing term loans on five vessels, featuring 20 quarterly instalments, a $111.1 million balloon payment due June 2031, and interest at SOFR + 1.65%. The facility, guaranteed by KNOP and secured by mortgages on the vessels, closed on August 25, 2026 and replaces loans previously maturing in September 2026.
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Key Figures
Hedda Knutsen purchase price: $113.0 million
Outstanding indebtedness on Hedda Knutsen: $89.4 million
Capitalized fees related to Hedda Knutsen credit facility: $0.8 million
+5 more
8 metrics
Hedda Knutsen purchase price
$113.0 million
Consideration to acquire Knutsen Canadian Chartering AS, owner of the shuttle tanker Hedda Knutsen
Outstanding indebtedness on Hedda Knutsen
$89.4 million
Debt deducted from purchase price in Acquisition calculation
Capitalized fees related to Hedda Knutsen credit facility
$0.8 million
Added to Acquisition cost of Hedda Knutsen
Initial Acquisition cost
$24.4 million
Approximate initial cost of Hedda Knutsen Acquisition, subject to working capital adjustments
Hedda Knutsen deadweight tonnage
154,000 deadweight tons
Size of DP2 Suezmax class shuttle tanker built in 2024
New senior secured credit facility
$225 million
Term loan entered into on August 7, 2026 to refinance existing vessel loans
Refinanced existing term loans
$225.8 million
Existing loans on five vessels refinanced by the new facility
Balloon payment at maturity
$111.1 million
Balloon due upon credit facility maturity in June 2031
Key Terms
senior secured credit facility, time charter, balloon payment, SOFR, +1 more
5 terms
senior secured credit facility financial
"entered into a new $225 million senior secured credit facility, with DNB Bank ASA"
A senior secured credit facility is a loan or revolving line of credit where lenders have first legal claim on specific company assets (collateral) and the debt ranks above other obligations for repayment. For investors it signals where a lender sits in the repayment pecking order and how much protection creditors have if the company struggles, affecting credit costs, the company’s ability to borrow more, and potential recoveries in a default — like a mortgage taking priority over other claims on a house.
time charter financial
"The vessel is operating in Brazil on a time charter with Petrobras"
A time charter is an agreement where a ship owner rents out their vessel to a customer for a set period, during which the customer has control over the ship’s use and operation. This arrangement matters to investors because it provides a steady income stream for the ship owner and indicates ongoing demand for shipping services, reflecting the health of global trade and transportation markets.
balloon payment financial
"with a balloon payment of $111.1 million due at maturity in June 2031"
A balloon payment is a large, single lump-sum due at the end of a loan after a schedule of smaller regular payments; think of it as making modest monthly payments like rent but owing one big bill at the finish. For investors, it matters because the borrower's ability to make or refinance that final payment affects credit risk, cash flow timing and the value of debt or equity tied to that borrower—unexpected shortfalls can cause losses or force restructuring.
SOFR financial
"The credit facility bears interest at a rate per annum equal to SOFR plus a margin"
The Secured Overnight Financing Rate (SOFR) is a market benchmark that measures the cost of borrowing cash overnight using U.S. Treasury securities as collateral. Investors watch SOFR because it acts like a speedometer for short-term interest costs—affecting loan rates, bond yields and the pricing of interest-rate contracts—so movements change borrowing expenses, cash returns and the value of interest-sensitive investments.
master limited partnership financial
"structured as a publicly traded master limited partnership but is classified as a corporation"
A master limited partnership is a type of business structure that combines features of a corporation and a partnership, allowing it to raise money from investors while passing profits directly to them. Think of it as a shared ownership group that offers regular income, making it attractive to investors seeking steady cash flow. This structure is often used by companies involved in natural resources or energy, where consistent revenue is common.
FAQ
What acquisition did KNOT Offshore Partners (KNOP) announce in August 2026?
KNOT Offshore Partners LP announced that its subsidiary KNOT Shuttle Tankers AS will acquire Knutsen Canadian Chartering AS, owner of the shuttle tanker Hedda Knutsen, from Knutsen NYK Offshore Tankers AS as part of an $113.0 million transaction.
How much will KNOP initially pay for the Hedda Knutsen acquisition?
The initial cost of the Hedda Knutsen Acquisition will be approximately $24.4 million, calculated as the $113.0 million purchase price minus $89.4 million of outstanding indebtedness plus $0.8 million of capitalized fees, subject to customary working capital adjustments.
What are the charter terms for the Hedda Knutsen tanker owned by KNOP?
The Hedda Knutsen, a 154,000-deadweight ton DP2 Suezmax class shuttle tanker, operates in Brazil on a time charter with Petrobras. The current fixed period runs until November 2034, and Petrobras holds an option to extend the charter for a further 5 years.
What refinancing did KNOT Offshore Partners (KNOP) complete in August 2026?
Subsidiaries of KNOT Offshore Partners LP entered into a new $225 million senior secured credit facility to refinance $225.8 million of existing term loans on five vessels. Closing occurred on August 25, 2026.
What are the key terms of KNOP’s new $225 million credit facility?
The $225 million senior secured credit facility is a term loan with 20 consecutive quarterly instalments and a $111.1 million balloon payment due at maturity in June 2031. It bears interest at SOFR + 1.65% per annum and is guaranteed by KNOP.
Which KNOP vessels are covered by the new $225 million credit facility?
The new senior secured credit facility is for subsidiaries that own the Tordis Knutsen, Vigdis Knutsen (renamed ‘Ametista Brazil’ by its bareboat charterer), Lena Knutsen, Anna Knutsen, and Brasil Knutsen, refinancing their prior term loans.
AI-generated analysis. How Rhea-AI works. Not financial advice.
