Kimbell Royalty to draw on revolver to fund portion of asset purchase

By Wendy Van Sickle

Columbus, Ohio, Aug. 2 – Kimbell Royalty Partners, LP will borrow under its $400 million revolving credit facility to fund a portion of its planned acquisition of mineral and royalty interests held by a private seller in a cash transaction valued at approximately $455 million, according to a news release.

The company also plans to use proceeds of a private placement of 6% series A cumulative convertible preferred units to funds managed by affiliates of Apollo to help fund the purchase price and said the final mix of funding will be determined at closing.

The seller’s acreage is located in the Permian Basin and Mid-Continent. The acquisition is expected to close in the third quarter of 2023.

Fort Worth-based Kimbell Royalty Partners owns and acquires mineral and royalty interests in oil and natural gas properties.

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