Natural Resource Partners LP (NYSE: NRP) reports the pricing of its private offering of $125,000,000 aggregate principal amount of 9.125% senior notes due 2018, which includes $105,000,000 of notes to be offered only to qualified institutional buyers pursuant to Rule 144A under the Securities Act and to non-US persons outside the US in compliance with Regulation S promulgated under the Securities Act in a private placement to eligible purchasers and $20,000,000 of notes offered concurrently in a private placement to an affiliate.
The notes are anticipated to be issued on Oct. 17 under an indenture pursuant to which NRP initially issued $300 million principal amount of its 9.125% senior notes due 2018 on Sept. 18, 2013. The notes will be issued at 99.5% of par value. The notes will be treated as a single series with, and will have the same terms as, the existing notes, but will not be fungible with the existing notes for trading purposes unless and until they are exchanged for registered notes.
The net proceeds from the offering will be used to fund a portion of the purchase price of NRP's pending acquisition of non-operated working interests in oil and gas assets located in the Bakken/Three Forks play from an affiliate of Kaiser-Francis Oil Co.