OFFSHORE MERCHANT PARTNERS ANNOUNCES A USD 50 MILLION INVESTMENT IN PRIVATE CONVERTIBLE PREFERRED UNITS IN KNOT OFFSHORE PARTNERS L.P.

Offshore Merchant Partners is pleased to announce a private convertible preferred unit investment in KNOT Offshore Partners L.P. The transaction is a key milestone for Offshore Merchant Partners Asset Yield Fund.

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Offshore Merchant Partners Asset Yield Fund ("OMP AYF") has underwritten USD 50 million in a privately negotiated convertible preferred unit (“Preferred Units”) issue expected to close in Q1 2017 subject to customary closing conditions. The transaction will have an accordion feature allowing for a total issuance of no more than USD 99 million of Preferred Units in total, subject to certain conditions.

KNOT Offshore Partners L.P. (“KNOP”), is a Master Limited Partnership listed on New York Stock Exchange in April 2013. The company has a market cap of ca. USD 615 million and an enterprise value of ca. USD 1.2 billion.

With announced drop-down of Raquel Knutsen in December 2016, KNOP owns a modern fleet of 11 advanced DP2 shuttle tankers with an average age of 4.7 years. All vessels are on long-term contracts with an average remaining firm period of 5.3 years and a total firm backlog of USD 880 million. KNOP’s clients are all major energy companies with a real physical requirement for transportation.

Following this transaction, OMP AYF has invested about a quarter of its total commitments of USD 381 million, financing multiple modern offshore assets through leases, preferred equity and junior debt instruments.

Commenting on the Transaction, the Chairman of Offshore Merchant Partners and Senior Partner at HitecVision, Alf C. Thorkildsen said “The announced transaction is a confirmation of the position Offshore Merchant Partners has secured, enabling the company to become a key financing provider to market leaders in the offshore oil & gas industry.”

Adding to Mr. Thorkildsen, CEO Carl Petter Finne said “This transaction illustrates the team’s ability to provide tailor-made long dated financing solutions to the offshore, oil & gas industry, and represents an important milestone in the development of Offshore Merchant Partners.”

 

About KNOT Offshore Partners L.P.

KNOT Offshore Partners owns, operates and acquires shuttle tankers under long-term charters in the offshore oil production regions of the North Sea and Brazil. KNOT Offshore Partners owns and operates a fleet of 11 offshore shuttle tankers with an average age of 4.7 years.

KNOT Offshore Partners is structured as a publicly traded Master Limited Partnership. KNOT Offshore Partners’ common units trade on the New York Stock Exchange under the ticker “KNOP”.

 

About Offshore Merchant Partners

Offshore Merchant Partners is an independent specialty finance company providing financing solutions to the global oil & gas related offshore asset markets. The company offers bespoke long-term financing solutions primarily through sale-leaseback structures and junior debt instruments, drawing on more than 190 years of combined relevant industrial and financial expertise in the team.

Offshore Merchant Partners is headquartered in Oslo and presently employs fifteen professionals with significant sector-specific expertise and relationships with leading companies and institutions globally. Offshore Merchant Partners is structured as a portfolio company of HitecVision VI L.P.

 

About HitecVision

HitecVision is Europe’s leading private equity investor focused on the upstream offshore oil and gas industry. HitecVision is headquartered in Stavanger, the centre of the Norwegian oil and gas industry, and has offices in Oslo and Houston. Since 1994, HitecVision has invested in, acquired or established more than 150 companies (including add-on acquisitions). HitecVision manages five private equity funds with a total committed equity base of USD 5 billion.

 

Contact

 

Alf C. Thorkildsen – Senior Partner in HitecVision and Chairman of Offshore Merchant Partners

Carl Petter Finne – CEO of Offshore Merchant Partners

 

Tlf: +47 977 50 833

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www.hitecvision.com

Tlf: +47 97 04 69 27

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www.omp.no

Skrevet på 06.12.2016