FORT WORTH, Texas, Nov. 9, 2021 /PRNewswire/ -- Kimbell Royalty Partners, LP (NYSE: KRP) ("Kimbell") today announced the pricing of its public offering of 3,750,000 common units representing limited partner interests, at a public offering price of $14.00 per common unit. The total gross proceeds of the offering, before underwriters' discounts and estimated offering expenses, will be approximately $52.5 million. Kimbell has granted the underwriters an option to purchase up to 562,500 additional common units at the public offering price less the underwriting discount and commissions. The offering is expected to close on November 15, 2021, subject to customary closing conditions.
Kimbell intends to use the net proceeds from the offering to fund a portion of the cash purchase price for the pending acquisition of oil and natural gas mineral and royalty interests held by an undisclosed seller (the "Acquisition"), as described in Kimbell's Current Report on Form 8-K filed with the Securities and Exchange Commission (the "SEC") on November 9, 2021, and to pay fees and expenses related to the Acquisition. Pending the closing of the Acquisition, Kimbell intends to use the net proceeds from the offering for the repayment of outstanding borrowings under its revolving credit facility. Kimbell may use future amounts borrowed under its revolving credit facility for general partnership purposes, including a potential redemption of a portion of its outstanding 7.0% Series A Cumulative Convertible Preferred Units (the "Preferred Units").
Citigroup and Raymond James & Associates are acting as joint book-running managers for the offering. RBC Capital Markets, LLC is also acting as a book-running manager for the offering. KeyBanc Capital Markets Inc., Stephens Inc., Stifel, Nicolaus & Company, Incorporated, and TD Securities (USA) LLC are acting as co-managers for the offering. When available, a copy of the prospectus for the offering may be obtained from:
c/o Broadridge Financial Solutions
1155 Long Island Avenue
Edgewood, NY 11717
Telephone: (800) 831-9146
Raymond James & Associates, Inc.
Attn: Equity Syndicate
880 Carillon Parkway
St. Petersburg, FL 33716
Telephone: (800) 248-8863
To obtain a copy of the prospectus free of charge, visit the SEC's website (www.sec.gov) and search under the registrant's name, "Kimbell Royalty Partners, LP."
The common units will be issued and sold pursuant to an effective shelf registration statement on Form S-3 previously filed with the SEC. This news release shall not constitute an offer to sell or the solicitation of an offer to buy the common units, nor shall there be any sale of the common units in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. This offering may only be made by means of a prospectus supplement and related base prospectus.
This news release shall not constitute a notice of redemption with respect to the Preferred Units. Any redemption of the Preferred Units will be made pursuant to a notice of redemption in accordance with the terms of such securities.
About Kimbell Royalty Partners
Kimbell (NYSE: KRP) is a leading oil and gas mineral and royalty company based in Fort Worth, Texas. Kimbell owns mineral and royalty interests in over 13 million gross acres in 28 states and in every major onshore basin in the continental United States, including ownership in more than 97,000 gross wells with over 41,000 wells in the Permian Basin.
This news release includes forward-looking statements, including statements related to the proposed public offering, the use of proceeds therefrom, the consummation of the Acquisition, the potential redemption of the Preferred Units and other statements that are not historical facts. These forward-looking statements involve risks and uncertainties, including risks that the anticipated benefits of the Acquisition are not realized; risks relating to Kimbell's integration of the Acquisition assets; risks relating to the possibility that the Acquisition does not close when expected or at all because any conditions to the closing are not satisfied on a timely basis or at all; and risks relating to Kimbell's business and prospects for growth generally. Except as required by law, Kimbell undertakes no obligation and does not intend to update these forward-looking statements to reflect events or circumstances occurring after this news release. When considering these forward-looking statements, you should keep in mind the risk factors and other cautionary statements in Kimbell's Annual Report on Form 10-K and other filings with the SEC, available at the SEC's website at www.sec.gov. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this news release. Kimbell may not consummate the Acquisition and the closing of the offering is not conditioned upon the Acquisition.
Dennard Lascar Investor Relations
SOURCE Kimbell Royalty Partners, LP