By Lisa Kerner
Charlotte, N.C., April 20 - Natural Resource Partners LP subsidiary NRP (Operating) LLC completed a private placement of $200 million of senior notes (series H and I).
Proceeds were used to eliminate all of the $179 million outstanding under the revolving credit facility.
The company will complete the closings for another $100 million of senior notes (series J and series K) later in 2011, according to a Natural Resource news release.
Natural Resource will use the balance of the proceeds to fund future acquisitions, including the remaining balance of the Hillsboro acquisition.
A total of four tranches of amortizing senior notes will be issued as follows:
• $75 million of 4.73% series H notes due Dec. 1, 2023;
• $125 million of 5.03% series I notes due Dec. 1, 2026;
• $50 million of 5.03% series J notes due Dec. 1, 2026; and
• $50 million of 5.18% series K notes due Dec. 1, 2026.
All tranches will have semiannual interest payments beginning Dec. 1, 2011 and equal annual principal payments starting Dec. 1, 2014.
Citigroup Global Markets Inc. is the placement agent.
The weighted average interest rate of the full $300 million to be issued is 4.98%.
"Following the initial closings, NRP's weighted average interest rate on our total senior notes outstanding of $781 million is 6.13%," chief financial officer Dwight Dunlap said in the release.
Natural Resource Partners is a Houston-based owner and manager of coal properties and coal handling and transportation infrastructure.
| Issuer: | NRP (Operating) LLC
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| Issue: | Senior notes
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| Amount: | $200 million
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| Placement agent: | Citigroup Global Markets Inc.
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| Settlement date: | April 20
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| Distribution: | Private placement
|
|
|
| Series H notes
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| Amount: | $75 million
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| Coupon: | 4.73%
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| Maturity: | Dec. 1, 2023
|
|
|
| Series I notes
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| Amount: | $125 million
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| Coupon: | 5.03%
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| Maturity: | Dec. 1, 2026
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