Natural Resource to redeem $90 million 9 1/8% notes, repay revolver

By Susanna Moon

Chicago, Feb. 23 – Natural Resource Partners LP said it will redeem $90 million of its 9 1/8% senior notes due 2018 and repay NRP Operating LLC’s revolving credit facility using proceeds of a preferred units and new notes.

The transactions are part of the company’s multi-prong plan to refinance its debt.

Natural Resource “entered into definitive agreements with current and new stakeholders in order to strengthen its balance sheet, enhance its liquidity and reposition the partnership for long-term growth,” according to a company announcement.

The company also will exchange $241 million of its 9 1/8% senior notes due 2018 for new 10˝% senior notes due 2022.

After the transactions close, NRP will have total debt of $944 million, including $346 million of the 2022 notes. NRP plans to redeem all remaining 2018 notes in October.

“These transactions mark the culmination of a two-year strategy focused on deleveraging NRP and extending our 2018 debt maturities,” Craig Nunez, chief financial officer, said in the press release.

“Following the closing of these transactions, we intend to continue to deleverage and improve our balance sheet with the ultimate goal of returning to growth for the benefit of our unitholders.”

Natural Resource is a Houston-based company that owns, manages and leases mineral properties in the United States and owns coal reserves in three major coal-producing regions: Appalachia, the Illinois Basin and the West.

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