Rhino Resource Partners LP has announced that a binding term sheet agreement has been completed between Royal Energy Resources Inc. and Wexford Capital LP where Royal Energy will acquire 6 769 112 issued and outstanding common units of the Partnership currently owned by Wexford.
The binding term sheet also includes the acquisition by Royal at a later date of all of the issued and outstanding membership interests of Rhino GP LLC, the general partner of Rhino, as well as 9 455 252 issued and outstanding subordinated units of the Partnership currently owned by Wexford.
Pursuant to the executed binding Term Sheet, Royal and Wexford agree to negotiate definitive agreements to finalise the contemplated transactions described above no later than 15 January 2016.
Joe Funk, President and Chief Executive Officer of Rhino’s general partner, stated: “We look forward to the opportunity to work with Royal once the contemplated transactions are complete. Royal brings additional resources which, when combined with the Rhino platform, provide us with the capability to strategically grow the Partnership as we move forward. Royal’s insight and market strategies will provide us with opportunities to grow our cash flow in the future so that we can deliver optimal value to our unitholders. We appreciate Wexford’s contributions to Rhino as they have been a long-term supportive sponsor since they formed our original operating company in 2003.”
Edited from press release by Harleigh Hobbs
Read the article online at: https://www.worldcoal.com/coal/12012016/royal-energy-resources-to-acquire-certain-interests-from-wexford-capital-32/