Kimbell Royalty Partners, LP Announces Pricing of Upsized Public Offering of Common Units
Kimbell Royalty Partners (NYSE: KRP) has announced the pricing of its upsized public offering of 10,000,000 common units at $14.90 per unit, expecting to raise approximately $149.0 million in gross proceeds. The offering includes an option for underwriters to purchase up to 1,500,000 additional units.
The offering is scheduled to close on January 9, 2025. Kimbell plans to use the net proceeds to repay outstanding borrowings under its revolving credit facility. The company intends to fund the cash portion of its pending Boren Minerals acquisition and related expenses through future borrowings under the same facility.
The offering is being managed by multiple financial institutions, with Citigroup, J.P. Morgan, RBC Capital Markets, BofA Securities, and Mizuho acting as joint-bookrunning managers.
Kimbell Royalty Partners (NYSE: KRP) ha annunciato il prezzo della sua offerta pubblica aumentata di 10.000.000 unità comuni a $14,90 per unità, prevedendo di raccogliere circa $149,0 milioni in proventi lordi. L'offerta include un'opzione per i sottoscrittori di acquistare fino a 1.500.000 unità aggiuntive.
L'offerta è prevista per chiudersi il 9 gennaio 2025. Kimbell prevede di utilizzare i proventi netti per ripagare i prestiti in essere sotto il proprio credito rotativo. L'azienda intende finanziare la parte in contante della sua acquisizione di Boren Minerals e le spese correlate attraverso futuri prestiti sotto la stessa struttura.
L'offerta è gestita da più istituzioni finanziarie, con Citigroup, J.P. Morgan, RBC Capital Markets, BofA Securities e Mizuho che agiscono come gestori joint-bookrunning.
Kimbell Royalty Partners (NYSE: KRP) ha anunciado el precio de su oferta pública aumentada de 10.000.000 de unidades comunes a $14.90 por unidad, esperando recaudar aproximadamente $149.0 millones en ingresos brutos. La oferta incluye una opción para que los suscriptores compren hasta 1.500.000 unidades adicionales.
Se programó que la oferta cierre el 9 de enero de 2025. Kimbell planea utilizar los ingresos netos para pagar préstamos pendientes bajo su línea de crédito rotativa. La empresa tiene la intención de financiar la parte en efectivo de su adquisición pendiente de Boren Minerals y los gastos relacionados a través de futuros préstamos bajo la misma línea.
La oferta está siendo gestionada por varias instituciones financieras, con Citigroup, J.P. Morgan, RBC Capital Markets, BofA Securities y Mizuho actuando como gerentes de libro conjunto.
Kimbell Royalty Partners (NYSE: KRP)는 10,000,000개의 일반 유닛에 대해 $14.90 per unit의 가격으로 늘어난 공모를 발표하며, 대략 $149.0 million의 총 수익을 올릴 것으로 기대하고 있습니다. 이 공모에는 인수자들이 최대 1,500,000개의 추가 유닛을 구매할 수 있는 옵션이 포함되어 있습니다.
공모는 2025년 1월 9일에 마감될 예정입니다. Kimbell은 순수익을 활용하여 자산 유동성 한도 아래에 있는 미결제 차입금을 상환할 계획입니다. 이 회사는 향후 동일한 한도에서 차입하여 Boren Minerals 인수와 관련된 비용을 자금 조달할 예정입니다.
공모는 여러 금융 기관이 관리하고 있으며, Citigroup, J.P. Morgan, RBC Capital Markets, BofA Securities 및 Mizuho가 공동 관리자로 활동하고 있습니다.
Kimbell Royalty Partners (NYSE: KRP) a annoncé le prix de son offre publique augmentée de 10 000 000 d'unités ordinaires au prix de 14,90 $ par unité, s'attendant à lever environ 149,0 millions $ de produits bruts. L'offre comprend une option pour les souscripteurs d'acheter jusqu'à 1 500 000 unités supplémentaires.
La clôture de l'offre est prévue pour le 9 janvier 2025. Kimbell prévoit d'utiliser les produits nets pour rembourser les emprunts en cours au titre de sa facilité de crédit renouvelable. La société a l'intention de financer la partie en espèces de son acquisition prévue de Boren Minerals et les frais connexes par le biais de futurs emprunts dans le cadre de la même facilité.
L'offre est gérée par plusieurs institutions financières, Citigroup, J.P. Morgan, RBC Capital Markets, BofA Securities et Mizuho agissant en tant que gestionnaires en co-édition.
Kimbell Royalty Partners (NYSE: KRP) hat den Preis für ihr aufgestocktes öffentliches Angebot von 10.000.000 Stammanteilen zum Preis von 14,90 $ pro Anteil bekannt gegeben und erwartet, etwa 149,0 Millionen $ an Bruttoeinnahmen zu erzielen. Das Angebot umfasst eine Option für die Underwriter, bis zu 1.500.000 zusätzliche Anteile zu kaufen.
Das Angebot soll am 9. Januar 2025 abgeschlossen werden. Kimbell plant, die Nettoerlöse zur Rückzahlung ausstehender Darlehen im Rahmen seiner revolvierenden Kreditfazilität zu verwenden. Das Unternehmen beabsichtigt, den Baranteil seiner bevorstehenden Übernahme von Boren Minerals und damit verbundene Kosten durch zukünftige Darlehen aus derselben Fazilität zu finanzieren.
Das Angebot wird von mehreren Finanzinstituten geleitet, wobei Citigroup, J.P. Morgan, RBC Capital Markets, BofA Securities und Mizuho als gemeinsame Buchmacher fungieren.
- Successful upsizing of public offering indicates strong market demand
- Gross proceeds of $149.0 million strengthen financial position
- Strategic debt refinancing through revolving credit facility
- Significant dilution for existing unitholders with 10 million new units
- Additional potential dilution from 1.5 million unit underwriter option
Insights
Kimbell Royalty Partners' upsized public offering represents a strategic capital raising move, pricing
The offering's proceeds will initially reduce revolving credit facility debt, effectively improving the balance sheet. However, this is essentially a bridge financing strategy, as the company plans to redraw on the facility to fund the recently announced Boren Minerals acquisition. This approach maintains financial flexibility while ensuring acquisition funding.
The pricing at
This capital raising initiative aligns with Kimbell's growth strategy in the mineral and royalty space. The timing is particularly strategic given the current market dynamics in the oil and gas sector. Mineral rights portfolios like Boren's are valuable assets that provide exposure to commodity price upside without direct operating costs.
The size of the offering, at 10 million units plus a potential 1.5 million unit greenshoe, represents significant expansion of Kimbell's equity base. This suggests management's confidence in the accretive nature of the Boren acquisition and their ability to integrate these assets effectively. The structure allows Kimbell to maintain operational flexibility while pursuing growth opportunities in the mineral rights space.
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 Boren Minerals (the "Acquisition"), as described in Kimbell's Current Report on Form 8-K filed with the Securities and Exchange Commission (the "SEC") on January 7, 2025, Kimbell intends to fund the cash portion of the purchase price of the Acquisition and related fees and expenses from future borrowings under its revolving credit facility.
Citigroup, J.P. Morgan, RBC Capital Markets, BofA Securities and Mizuho are acting as joint-bookrunning managers for the offering. PNC Capital Markets LLC, KeyBanc Capital Markets, Capital One Securities and TCBI Securities, Inc., doing business as Texas Capital 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,
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
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 (as amended) 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
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