Natural Resource Partners LP’s (NYSE: NRP) board of directors of its general partner has approved a 1-for-10 reverse unit split on its common units, effective after the market closes on Feb. 17. The common units will begin trading on a split-adjusted basis on Feb. 18.
Pursuant to the reverse unit split, common unitholders will receive one common unit for every 10 common units owned at the close of business on Feb. 17. All fractional units created by the reverse unit split will be rounded to the nearest whole unit, as provided by NRP's partnership agreement. NRP's common unit count will be reduced from 122.3 million outstanding common units to 12.2 million outstanding common units post-split.
The announced distribution of $0.045 per common unit for the fourth quarter of 2015 will not be impacted by the reverse unit split, as the distribution will be paid in advance of the effective date of the reverse unit split. NRP's common units will continue to trade on the New York Stock Exchange under the symbol "NRP" but will trade under a new CUSIP. The reverse split is intended to increase the market price per unit of NRP's common units to allow NRP to maintain its New York Stock Exchange listing.
NRP's transfer agent, American Stock Transfer and Trust Company, will act as the exchange agent.