Business Context and Reporting Period
This Form 6-K filing by KNOT Offshore Partners LP covers the month of July 2013, specifically dated July 12, 2013. The registrant is a foreign private issuer reporting on a material corporate transaction involving its wholly owned subsidiary, KNOT Shuttle Tankers AS.
Key Financial Metrics and Transaction Details
The filing details a proposed acquisition of the company owning the shuttle tanker Carmen Knutsen. The filing does not provide standard periodic financial metrics such as revenue, profit, cash flow, margins, or existing debt levels for the reporting period.
- Target Asset: Company owning the shuttle tanker Carmen Knutsen.
- Gross Purchase Price: $145.0 million.
- Existing Debt Assumed: Approximately $89.1 million.
- Net Equity Consideration: Approximately $55.9 million (calculated as $145.0 million less $89.1 million).
- Payment Structure:
- Cash payment: Approximately $45.4 million.
- Seller financing (loan from KNOT): Approximately $10.5 million.
Material Changes
The primary material change is the entry into a Share Purchase Agreement to acquire the Carmen Knutsen asset. This represents a significant capital deployment and potential expansion of the fleet, subject to customary closing conditions.
Outlook, Risks, and Contingencies
Closing Timeline: The acquisition is expected to close on or before August 1, 2013.
Contingencies: The transaction is subject to customary closing conditions and post-closing adjustments to the purchase price. The filing does not provide specific management commentary on future earnings guidance or broader market risks beyond the transaction specifics.
Investor Verification Checklist
- Verify the final closing date of the transaction (expected by August 1, 2013).
- Confirm the final purchase price after post-closing adjustments.
- Review the terms of the $10.5 million seller financing loan provided by KNOT.
- Assess the impact of the $45.4 million cash outflow on the company's current liquidity position.
- Examine the operational status and contract history of the Carmen Knutsen tanker.