Business Context and Reporting Period
This Form 6-K filing by KNOT Offshore Partners LP covers the month of June 2017. The report details the closing of a second private placement of Series A Preferred Units and associated amendments to the partnership agreement.
Key Financial Metrics
- Capital Raised: The Partnership issued 1,666,667 Additional Series A Preferred Units at $24.00 per unit.
- Net Proceeds: Approximately $38.8 million after deducting estimated fees and expenses.
- Use of Proceeds: General partnership purposes, including potential acquisitions, capital expenditures, or debt repayment.
- Revenue, Profit, and Cash Flow: The filing text does not provide a clear value for operating revenue, net income, operating cash flow, or margins for the period.
- Debt and Liquidity: Specific debt balances and liquidity ratios are not disclosed in this filing.
Material Changes
The primary material change is the increase in equity capital through the issuance of 1,666,667 new Series A Preferred Units on June 30, 2017. This follows an initial issuance of 2,083,333 Series A Preferred Units on February 2, 2017. The terms of the Series A Preferred Units were amended in connection with this second placement.
Outlook, Risks, and Unusual Items
Management indicated that net proceeds will be utilized for general partnership purposes, which may include acquisitions, capital expenditures, or the repayment of indebtedness. No specific forward-looking guidance, risk factors, or unusual items were detailed in this specific filing text beyond the capital raise mechanics.
Investor Verification Checklist
- Verify the total outstanding number of Series A Preferred Units following the June 30 issuance.
- Review the Third Amended and Restated Partnership Agreement (Exhibit 3.2) for specific rights and preferences of the new units.
- Confirm the actual allocation of the $38.8 million net proceeds in subsequent filings.
- Check for any impact on the Partnership's leverage ratios given the potential use of proceeds for debt repayment.