UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

SCHEDULE 13D/A

 

Under the Securities Exchange Act of 1934

(Amendment No. 4)*

 

RHINO RESOURCE PARTNERS, LP

 

(Name of Issuer)

 

Common Units

 

(Title of Class of Securities)

 

76218Y 10 3

 

(CUSIP Number)

 

William L. Tuorto
Royal Energy Resources, Inc.

56 Broad Street, Suite 2

Charleston, SC 29401

(843) 900-7693

 

Name, Address and Telephone Number of Person Authorized to

Receive Notices and Communications)

 

January 27, 2017

 

(Date of Event which Requires Filing of this Statement)

 

If the filing person has previously filed a statement on Schedule 13G to report the acquisition that is the subject of this Schedule 13D, and is filing this schedule because of §§240.13d-1(e), 240.13d-1(f) or 240.13d-1(g), check the following box. [  ]

 

Note: Schedules filed in paper format shall include a signed original and five copies of the schedule, including all exhibits. See Rule.13d-7 for other parties to whom copies are to be sent.

 

* The remainder of this cover page shall be filled out for a reporting person’s initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information which would alter disclosures provided in a prior cover page.

 

The information required on the remainder of this cover page shall not be deemed to be “filed” for the purpose of Section 18 of the Securities Exchange Act of 1934 (“Act”) or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act (however, see the Notes).

 

 

 

     

 

CUSIP No. 76218Y 10 3

1. Names of Reporting Person.

 

Royal Energy Resources, Inc.

2. Check the Appropriate Box if a Member of a Group (See Instructions)
 
(a)  
(b)
 
3. SEC Use Only

4. Source of Funds (See Instructions)

WC

5. Check if Disclosure of Legal Proceedings Is Required Pursuant to Items 2(d) or 2(e)

[  ]

6. Citizenship or Place of Organization

State of Delaware, United States

Number of Shares Beneficially

Owned by

Each Reporting

Person With:

7. Sole Voting Power – N/A

 

8. Shared Voting Power – 7,373,251 *

 

9. Sole Dispositive Power – N/A

 

10. Shared Dispositive Power – 7,373,251 *

11. Aggregate Amount Beneficially Owned by Each Reporting Person

7,373,251 *

12. Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions)  

13. Percent of Class Represented by Amount in Row (11)

41.7% **

14. Type of Reporting Person (See Instructions)

CO

 

* Amount of securities beneficially owned includes 6,676,912 Common Units representing limited partner interests (each, a “ Common Unit ”) in Rhino Resource Partners LP (the “ Partnership ”), 1,060,339 Subordinated Units representing limited partner interests in the Partnership (each, a “ Subordinated Unit ”), and 0 Series A Convertible Preferred Units (each, a “ Preferred Unit ” and together with the Common Units and Subordinated Units, the “ Units ”), owned by Royal Energy Resources, Inc. (“ Royal Energy ”). The Subordinated Units will convert into Common Units on a one-for-one basis at the times set forth in, and subject to the terms and conditions of, the Fourth Amended and Restated Agreement of Limited Partnership of the Partnership (the “ Partnership Agreement ”), and are entitled to vote on a one-for-one basis with the Common Units. The Preferred Units are convertible at the option of the Partnership at the times set forth in, and subject to the terms and conditions of, the Partnership Agreement, and are entitled to vote on an as-converted basis with the Common Units. Each Series A Preferred Unit will convert into a number of Common Units equal to the quotient (the “ Series A Conversion Ratio ”) of (i) the sum of $10.00 and any unpaid distributions in respect of such Preferred Unit divided by (ii) 75% of the volume-weighted average closing price of the Common Units for the preceding 90 trading days (the “ VWAP ”); provided however, that the VWAP will be capped at a minimum of $2.00 and a maximum of $10.00. On December 31, 2021, all outstanding Preferred Units will convert into common units at the then applicable Series A Conversion Ratio.

 

** Calculation of percentage based on a total of 12,905,799 Common Units and 1,235,534 Subordinated Units, and 1,500,000 Preferred Units outstanding which are convertible into an estimated 4,395,604 Common Units at $3.41 per Common Unit, for a total of 18,536,937 Units outstanding, which, based upon information provided by the Company, is the number of Common Units, Subordinated Units and Preferred Units issued and outstanding.

 

     

 

CUSIP No. 76218Y 10 3

1. Names of Reporting Person.

 

William L. Tuorto

2. Check the Appropriate Box if a Member of a Group (See Instructions)
 
(a)  
(b)
 
3. SEC Use Only

4. Source of Funds (See Instructions)

AF

5. Check if Disclosure of Legal Proceedings Is Required Pursuant to Items 2(d) or 2(e)

[  ]

6. Citizenship or Place of Organization

USA

Number of Shares Beneficially

Owned by

Each Reporting

Person With:

7. Sole Voting Power – N/A

 

8. Shared Voting Power – 7,373,251 *

 

9. Sole Dispositive Power – N/A

 

10. Shared Dispositive Power – 7,373,251 *

11. Aggregate Amount Beneficially Owned by Each Reporting Person

7,373,251 *

12. Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions)  

13. Percent of Class Represented by Amount in Row (11)

41.7% **

14. Type of Reporting Person (See Instructions)

IN

 

* Amount of securities beneficially owned includes 6,676,912 Common Units representing limited partner interests (each, a “ Common Unit ”) in Rhino Resource Partners LP (the “ Partnership ”), 1,060,339 Subordinated Units representing limited partner interests in the Partnership (each, a “ Subordinated Unit ”), and 0 Series A Convertible Preferred Units (each, a “ Preferred Unit ” and together with the Common Units and Subordinated Units, the “ Units ”), owned by Royal Energy Resources, Inc. (“ Royal Energy ”). The Subordinated Units will convert into Common Units on a one-for-one basis at the times set forth in, and subject to the terms and conditions of, the Fourth Amended and Restated Agreement of Limited Partnership of the Partnership (the “ Partnership Agreement ”), and are entitled to vote on a one-for-one basis with the Common Units. The Preferred Units are convertible at the option of the Partnership at the times set forth in, and subject to the terms and conditions of, the Partnership Agreement, and are entitled to vote on an as-converted basis with the Common Units. Each Series A Preferred Unit will convert into a number of Common Units equal to the quotient (the “ Series A Conversion Ratio ”) of (i) the sum of $10.00 and any unpaid distributions in respect of such Preferred Unit divided by (ii) 75% of the volume-weighted average closing price of the Common Units for the preceding 90 trading days (the “ VWAP ”); provided however, that the VWAP will be capped at a minimum of $2.00 and a maximum of $10.00. On December 31, 2021, all outstanding Preferred Units will convert into common units at the then applicable Series A Conversion Ratio.

 

** Calculation of percentage based on a total of 12,905,799 Common Units and 1,235,534 Subordinated Units, and 1,500,000 Preferred Units outstanding which are convertible into an estimated 4,395,604 Common Units at $3.41 per Common Unit, for a total of 18,536,937 Units outstanding, which, based upon information provided by the Company, is the number of Common Units, Subordinated Units and Preferred Units issued and outstanding.

 

     

 

CUSIP No. 76218Y 10 3

1. Names of Reporting Person.

 

Brian Hughs

2. Check the Appropriate Box if a Member of a Group (See Instructions)
 
(a)  
(b)
 
3. SEC Use Only

4. Source of Funds (See Instructions)

AF

5. Check if Disclosure of Legal Proceedings Is Required Pursuant to Items 2(d) or 2(e)

[  ]

6. Citizenship or Place of Organization

USA

Number of Shares Beneficially

Owned by

Each Reporting

Person With:

7. Sole Voting Power – N/A

 

8. Shared Voting Power – 7,373,251 *

 

9. Sole Dispositive Power – N/A

 

10. Shared Dispositive Power – 7,373,251 *

11. Aggregate Amount Beneficially Owned by Each Reporting Person

7,373,251 *

12. Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions)  

13. Percent of Class Represented by Amount in Row (11)

41.7% **

14. Type of Reporting Person (See Instructions)

IN

 

* Amount of securities beneficially owned includes 6,676,912 Common Units representing limited partner interests (each, a “ Common Unit ”) in Rhino Resource Partners LP (the “ Partnership ”), 1,060,339 Subordinated Units representing limited partner interests in the Partnership (each, a “ Subordinated Unit ”), and 0 Series A Convertible Preferred Units (each, a “ Preferred Unit ” and together with the Common Units and Subordinated Units, the “ Units ”), owned by Royal Energy Resources, Inc. (“ Royal Energy ”). The Subordinated Units will convert into Common Units on a one-for-one basis at the times set forth in, and subject to the terms and conditions of, the Fourth Amended and Restated Agreement of Limited Partnership of the Partnership (the “ Partnership Agreement ”), and are entitled to vote on a one-for-one basis with the Common Units. The Preferred Units are convertible at the option of the Partnership at the times set forth in, and subject to the terms and conditions of, the Partnership Agreement, and are entitled to vote on an as-converted basis with the Common Units. Each Series A Preferred Unit will convert into a number of Common Units equal to the quotient (the “ Series A Conversion Ratio ”) of (i) the sum of $10.00 and any unpaid distributions in respect of such Preferred Unit divided by (ii) 75% of the volume-weighted average closing price of the Common Units for the preceding 90 trading days (the “ VWAP ”); provided however, that the VWAP will be capped at a minimum of $2.00 and a maximum of $10.00. On December 31, 2021, all outstanding Preferred Units will convert into common units at the then applicable Series A Conversion Ratio.

 

** Calculation of percentage based on a total of 12,905,799 Common Units and 1,235,534 Subordinated Units, and 1,500,000 Preferred Units outstanding which are convertible into an estimated 4,395,604 Common Units at $3.41 per Common Unit, for a total of 18,536,937 Units outstanding, which, based upon information provided by the Company, is the number of Common Units, Subordinated Units and Preferred Units issued and outstanding.

 

     

 

This Amendment No. 4 to Schedule 13D modifies and supplements the Schedule 13D (the “ Original Statement ”) initially filed on February 1, 2016, as amended by Amendment No. 1 to Schedule 13D filed on March 28, 2016, as amended by Amendment No. 2 to Schedule 13D filed on April 22, 2016, as amended by Amendment No. 3 filed on January 12, 2017, with respect to the common units representing limited partner interests (each, a “ Common Unit ”) of Rhino Resource Partners LP (the “ Partnership ”). Except to the extent provided by the information contained in this Amendment No. 3, the Original Statement, as modified by Amendment Nos. 1 and 2, remains in full force and effect. Capitalized terms used herein without definition have the respective meanings ascribed to them in the Statement.

 

ITEM 3. SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATION

 

Item 3 is hereby further supplemented by adding the following:

 

On January 27, 2017, Royal Energy disposed of all of its 200,000 Series A Convertible Preferred Units (the “ Preferred Units ”) for $10 per Preferred Unit in three separate transactions. 100,000 Preferred Units were conveyed to Weston Energy, LLC (“ Weston ”) to repay $1,000,000 of indebtedness to Weston. The remaining 100,000 Preferred Units were sold to a third party for $10 per Preferred Unit, and the proceeds were used to repay the balance of Royal Energy’s obligation to Weston.

 

ITEM 4. PURPOSE OF TRANSACTION

 

Item 4 is hereby further supplemented by adding the following:

 

On January 27, 2017, Royal Energy disposed of all of its 200,000 Preferred Units in three separate transactions. As described in Item 3, the proceeds were used to repay the balance of Royal Energy’s obligation to Weston.

 

ITEM 5. INTEREST IN SECURITIES OF THE ISSUER

 

(a) — (b) The aggregate number and percentage of shares of Common Units beneficially owned by the Reporting Persons (on the basis of a total of 12,905,799 Common Units, 1,235,534 Subordinated Units and 1,500,000 Preferred Units issued and outstanding as reported to Royal Energy by Rhino are as follows:

 

Royal Energy Resources, Inc.  
a) Amount beneficially owned: 7,373,251 Percentage 41.7%
b) Number of shares to which the Reporting Person has:  
  i) Sole power to vote or to direct the vote:
  ii) Shared power to vote or to direct the vote: 7,373,251
  iii) Sole power to dispose or to direct the disposition of:
  iv) Shared power to dispose or to direct the disposition of: 7,373,251

 

William L. Tuorto  
a) Amount beneficially owned: 7,373,251 Percentage 41.7%
b) Number of shares to which the Reporting Person has:  
  i) Sole power to vote or to direct the vote:
  ii) Shared power to vote or to direct the vote: 7,373,251
  iii) Sole power to dispose or to direct the disposition of:
  iv) Shared power to dispose or to direct the disposition of: 7,373,251

 

Brian Hughs  
Amount beneficially owned: 7,373,251 Percentage 41.7%
Number of shares to which the Reporting Person has:  
i) Sole power to vote or to direct the vote:
ii) Shared power to vote or to direct the vote: 7,373,251
iii) Sole power to dispose or to direct the disposition of:
iv) Shared power to dispose or to direct the disposition of: 7,373,251

 

The total Units reported as beneficially owned by each of Royal Energy, Mr. Tuorto and Mr. Hughs include the Units reported as beneficially owned by Royal Energy. Mr. Tuorto, as the chairman and chief executive officer of Royal Energy, may be deemed to share beneficial ownership of any Units beneficially owned by Royal Energy, but he disclaims such beneficial ownership to the extent such beneficial ownership exceeds his pecuniary interest in Royal Energy. Mr. Hughs, as a vice president and director of Royal Energy, may be deemed to share beneficial ownership of any Units beneficially owned by Royal Energy, but he disclaims such beneficial ownership to the extent such beneficial ownership exceeds his pecuniary interest in Royal Energy.

 

     

 

SIGNATURE

 

After reasonable inquiry and to the best of my knowledge and belief, I certify that the information set forth in this statement is true, complete and correct.

 

January 30, 2017  
Date  

 

ROYAL ENERGY RESOURCES, INC.  
   
/s/ William L. Tuorto  
Signature  
William L. Tuorto, CEO  
Name/Title  

 

January 30, 2017  
Date  

 

/s/ William L. Tuorto  
Signature  
William L. Tuorto, Individually  
Name/Title  

 

January 30, 2017  
Date  

 

/s/ Brian Hughs  
Signature  
Brian Hughs, Individually  
Name/Title  

 

The original statement shall be signed by each person on whose behalf the statement is filed or his authorized representative. If the statement is signed on behalf of a person by his authorized representative (other than an executive officer or general partner of the filing person), evidence of the representative’s authority to sign on behalf of such person shall be filed with the statement: provided, however, that a power of attorney for this purpose which is already on file with the Commission may be incorporated by reference. The name and any title of each person who signs the statement shall be typed or printed beneath his signature.