FORT
WORTH, Texas, Aug. 2, 2023
/PRNewswire/ -- Kimbell Royalty Partners, LP (NYSE: KRP)
("Kimbell") today announced the pricing of its public offering of
7,250,000 common units representing limited partner interests, at a
public offering price of $14.00 per
common unit. The total gross proceeds of the offering, before
underwriters' discounts and estimated offering expenses, will be
approximately $101.5 million. Kimbell
has granted the underwriters an option to purchase up to 1,087,500
additional common units at the public offering price less the
underwriting discount and commissions. The offering is
expected to close on August 7, 2023,
subject to customary closing conditions.
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 of oil and
natural gas mineral and royalty interests held by a private seller
(the "Acquisition"), as described in Kimbell's Current Report on
Form 8-K filed with the Securities and Exchange Commission (the
"SEC") on August 2, 2023, Kimbell
intends to use amounts borrowed from its revolving credit facility
to fund a portion of the purchase price of the Acquisition and to
pay 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.
Citigroup, BofA Securities, Truist Securities, Mizuho,
and RBC Capital Markets are acting as joint-bookrunners
managers for the offering. PNC Capital Markets, J.P. Morgan,
Keybanc Capital Markets, Raymond
James, Stephens Inc., Stifel, and TD Securities are acting
as co-managers for the offering. When available, a copy of
the prospectus for the offering may be obtained from:
Citigroup
c/o Broadridge
Financial Solutions
1155 Long Island
Avenue
Edgewood, NY
11717
Telephone: (800)
831-9146
|
BofA Securities
NC1-022-02-25
Attention: Prospectus
Department
201 North Tryon
Street
Charlotte, NC
28255-0001
dg.prospectus_requests@bofa.com
|
To obtain a copy of the prospectus free of charge, visit the
SEC's website (www.sec.gov) and search under the registrant's name,
"Kimbell Royalty Partners, LP."
The common units will be issued and sold pursuant to an
effective shelf registration statement on Form S-3 previously filed
with the SEC. This news release shall not constitute an offer
to sell or the solicitation of an offer to buy the common units,
nor shall there be any sale of the common units in any state or
jurisdiction in which such offer, solicitation or sale would be
unlawful prior to registration or qualification under the
securities laws of any such state or jurisdiction. This offering
may only be made by means of a prospectus supplement and related
base prospectus.
About Kimbell Royalty Partners
Kimbell (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.
Forward-Looking Statements
This news release includes forward-looking statements, including
statements related to the proposed public offering, the use of
proceeds therefrom, the consummation of the Acquisition and other
statements that are not historical facts. These forward-looking
statements involve risks and uncertainties, including risks that
the anticipated benefits of the Acquisition are not realized; risks
relating to Kimbell's integration of the Acquisition assets; risks
relating to the possibility that the Acquisition does not close
when expected or at all because any conditions to the closing are
not satisfied on a timely basis or at all; and risks relating to
Kimbell's business and prospects for growth generally. Except
as required by law, Kimbell undertakes no obligation and does not
intend to update these forward-looking statements to reflect events
or circumstances occurring after this news release. When
considering these forward-looking statements, you should keep in
mind the risk factors and other cautionary statements in Kimbell's
Annual Report on Form 10-K and other filings with the SEC,
available at the SEC's website at www.sec.gov. You are
cautioned not to place undue reliance on these forward-looking
statements, which speak only as of the date of this news release.
Kimbell may not consummate the Acquisition and the closing of the
offering is not conditioned upon the Acquisition.
Contact:
Rick Black
Dennard Lascar Investor
Relations
krp@dennardlascar.com
(713) 529-6600
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SOURCE Kimbell Royalty Partners, LP