Co-Manager
Kimbell Royalty Partners
Equity Capital Markets
Follow-On Offering
Transaction Details
On August 2, 2023, Kimbell Royalty Partners, LP(“Kimbell” or the “Company”) announced the upsizing and pricing of an underwritten public offering of 7,250,000 common units representing limited partner interests at a public offering price of $14.00 per common unit.
- The company also granted the underwriters a 30-day option to purchase up to 1,087,500 additional common units.
- Kimbell intends to use the net proceeds from the offering for the repayment of outstanding borrowings under its revolving credit facility.
- At the closing of the pending acquisition described in Kimbell’s 8-K filed on August 2, 2023 (the “Acquisition”), Kimbell intends to use amounts borrowed from its revolving credit facility to fund a portion of the purchase price of the Acquisition and related fees and expenses.
- Kimbell may use future amounts borrowed under its revolving credit facility for general partnership purposes, including a potential redemption of a portion of its 6.0% Series A Cumulative Convertible Preferred Units that are expected to be issued in connection with the Acquisition.
About the company
Kimbell Royalty Partners, LP (NYSE: KRP) is a leading oil and gas mineral and royalty company based in Fort Worth, Texas. Kimbell owns mineral and royalty interests in over 16 million gross acres in 28 states and in every major onshore basin in the continental United States, including ownership in more than 125,000 gross wells with over 48,000 wells in the Permian Basin.
Sources: Company Filings And Press Release
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