By Stephanie N. Rotondo
Seattle, Feb. 2 – KNOT Offshore Partners LP sold $48.5 million of 8% series A convertible preferred units via a private placement, the company said in a 6-K filing with the Securities and Exchange Commission on Thursday.
The units were sold at $24.00 each to Offshore Merchant Partners Asset Yield Fund LP, which then transferred its rights to OMP AY Preferred Ltd., an affiliate of the fund.
The units are generally convertible into common units at the holder’s option after Feb. 2, 2019 on a one-for-one basis. The conversion rate will be redetermined quarterly.
The units are redeemable at the company’s option between Feb. 2, 2019 and Feb. 2, 2027. Holders can put the units to the company in the event of a change of control or at the 10th anniversary of issuance. In the case of the latter event, holders will receive, at the company’s option, 70% of the cash value of the units or 80% of the value in common units.
There is also a contingent convertible feature.
Proceeds will be used for general partnership purposes, which may include acquisitions, capital expenditures or the repayment of debt.
KNOT Offshore is an Aberdeen, Scotland-based shuttle tanker operator.
| Issuer: | KNOT Offshore Partners LP
|
| Securities: | Series A convertible preferred units
|
| Amount: | $48.5 million
|
| Coupon: | 8%
|
| Price: | $24.00
|
| Call options: | After Feb. 2, 2019 and before Feb. 2, 2027
|
| Put options: | Upon a change of control or upon the 10th anniversary of issuance
|
| Pricing date: | Feb. 2
|
| Distribution: | Private placement
|
| Stock symbol: | NYSE: KNOP
|
| Stock price: | $22.10 as of Feb. 2 close
|
| Market capitalization: | $600.99 million
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
