Westmoreland Coal Co. and Westmoreland Resource Partners (WMLP) have announced that WMLP will acquire the entire equity interests in Westmoreland Kemmerer and ownership of the Kemmerer mine in Wyoming.
“We are excited to announce the first transaction of our MLP drop-down strategy,” said Keith E. Alessi, CEO of Westmoreland Coal Co. and WMLP. “We expect the contribution of Kemmerer to significantly expand the size of the production base at WMLP, diversify the customers we serve and improve the stability of its cash flows through Kemmerer’s long-term contracts. This transaction demonstrates Westmoreland’s continued support of WMLP and our commitment to properly capitalise the partnership and position the balance sheet to fund future transactions.”
After completion of the transaction, Westmoreland will receive US$135 million of capital, US$20 million of WMLP common units and US$75 million of new WMLP Class A convertible units. The acquisition is projected to be immediately accretive to distributable cash flow on a per unit basis to WMLP.The transaction is will be complete once financing conditions and other customary closing conditions are met.
Edited from press release by Harleigh Hobbs
Read the article online at: https://www.worldcoal.com/coal/03062015/westmoreland-resources-partners-acquire-kemmerer-mine-2354/