KNOT notches loans

Shuttle tanker company KNOT Offshore Partners has refinanced debt with new loans totalling $380m.

The New York-listed operator said it has arranged a $20m revolving credit facility ending in 2019, and $360m in term loans also due in 2019.

The $20m will be repayable at Libor plus 2.125%.

The deals will save it $1.9m per year.

Existing bank debt of $327m will be refinanced and $10.6m will go towards repaying  seller’s credit to parent Knutsen NYK Offshore Tankers, related to the acquisition of a vessel.

The rest will be used for transaction expenses and general corporate purposes.

Due to the savings, the board is recommending upping its quarterly cash distribution by 4.6% from September.