FORT WORTH, Texas, Aug. 2, 2023 /PRNewswire/ — Kimbell Royalty Partners, LP KRP (“Kimbell”) today announced the pricing of its public offering of 7,250,000 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 $101.5 million. Kimbell has granted the underwriters an option to purchase up to 1,087,500 additional common units at the public offering price less the underwriting discount and commissions. The offering is expected to close on August 7, 2023, subject to customary closing conditions.
Kimbell intends to use the net proceeds from the offering for the repayment of outstanding borrowings under its revolving credit facility. At the closing of the pending acquisition of oil and natural gas mineral and royalty interests held by a private seller (the “Acquisition”), as described in Kimbell’s Current Report on Form 8-K filed with the Securities and Exchange Commission (the “SEC”) on August 2, 2023, Kimbell intends to use amounts borrowed from its revolving credit facility to fund a portion of the purchase price of the Acquisition and to pay related fees and expenses. Kimbell may use future amounts borrowed under its revolving credit facility for general partnership purposes, including a potential redemption of a portion of its 6.0% Series A Cumulative Convertible Preferred Units that are expected to be issued in connection with the Acquisition.
Citigroup, BofA Securities, Truist Securities, Mizuho, and RBC Capital Markets are acting as joint-bookrunners managers for the offering. PNC Capital Markets, J.P. Morgan, Keybanc Capital Markets, Raymond James, Stephens Inc., Stifel, and TD Securities 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…