Pierfront invests $30m in Singapore shipping group

According to a statement, the firm is investing via its Pierfront Capital Mezzanine Fund and acting as anchor in a follow-on placement of Series A preferred units in the New York-listed company. KNOT stock has fluctuated across the $22-24 range since the start of the year and closed at $22.95 on June 30.

Formed in 2013, KNOT is jointly owned by TS Shipping Invest - the parent company of Norway's Knutsen OAS Shipping - and Japan's Nippon Yusen Kaisha. It owns and operates a fleet of 13 shuttle tankers, equipped with dynamic positioning and offshore systems aimed at improving offloading efficiency in various weather conditions. The vessels are under long-term charters with major oil and gas companies such as Shell, ExxonMobil and Statoil.

Revenue improved 11% during 2016 to $173.7 million, with the company citing a strong operational performance, including 99.8% fleet utilization in the fourth quarter. Net income rose 34% year-on-year to $61.1 million.  

It is the third investment by Pierfront in the past 12 months, following a $25 million commitment last September to Merdeka Copper Gold, an Indonesia-based operator of copper and gold mines backed by Saratoga Capital and Provident Capital. Other recent deals include a $33 million investment in Greenko Ventures, the owner of a number of clean energy projects in India.