Offshore Merchant Partners announces new investment

Offshore Merchant Partners is pleased to announce an investment of USD 50 million in convertible preferred units in KNOT Offshore Partners L.P. The transaction was privately negotiated and is a key milestone for Offshore Merchant Partners’ Asset Yield Fund.

KNOT Offshore Partners L.P. is a Master Limited Partnership listed on New York Stock Exchange in April 2013. The company owns, operates and acquires shuttle tankers under long-term charters in the offshore oil production regions of the North Sea and Brazil, and 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.