KNOT Offshore Partners director's sponsor buys $43.5 million of preferred units
Director Trygve Seglem reported that the sponsor, Knutsen NYK, bought $43.5 million of KNOT Offshore Partners preferred units on November 3, in a filing made on November 4.
The purchases
1 insider
Open-market purchase on Nov 3, filed on Nov 4
1
Buyer
$43.5M
Bought
0
Sellers
Director
TS
Trygve Seglem
Buy · $43.5M · 2,083,333 shares
+142.9%
On the right, by how much each one increased the number of shares they own. Purchases declared to the SEC, the US stock market watchdog (Form 4), decided on the spot and not scheduled in advance.
AI analysis
Nov 4
Why it is interesting
Bought on the open market
Director Trygve Seglem reported a purchase of 2,083,333 Series A Preferred Units at $20.88 each, about $43.5 million, on November 3. The units were bought, not granted as pay, and no pre-set trading plan was used.
A sponsor's holding, not a personal one
The units are held indirectly through Knutsen NYK Offshore Tankers AS, which owns 100% of the general partner. The filing says Seglem disclaims ownership beyond a pecuniary interest (a personal financial stake).
The holding more than doubled
The purchase lifted the holding of these preferred units to 3,541,666, a 142.9% increase. It follows a purchase of 1,250,000 units at $20 on June 15, so the sponsor has put about $68.5 million into these units.
The context
Common units sit at a 52-week low
The common units closed at $8.87 on November 3, down 16.2% in a month and at their 52-week low, against a high of $11.55. The preferred price of $20.88 is a different security, so it is not a bet at today's common price.
Contracts and a raised payout
On September 3 the company said it is fully contracted for the second half of 2026 and about 97% for the first half of 2027. The quarterly payout per common unit rose to $0.075 from $0.026 a year earlier.
Bought from a third-party holder
The June purchase came from Pierfront Capital Mezzanine Fund, and the company said it was not a party. The company also bought the Hedda Knutsen tanker from Knutsen NYK on September 1 for $113.0 million before debt.
What it does not say
An average, not a guarantee
Studies found insider purchases earned more than 6% a year above the market on average, mostly in smaller companies, with no guarantee. This filing does not say when, or whether, the common units will recover.
Preferred units are not common shares
The buyer is a sponsor with its own interests in the company, and the units are convertible preferred. At $20.88 against $8.87 for a common unit, this purchase may say little about the common price.
Analysis written by an AI from public data. It is not investment advice.