If the filing
person has previously filed a statement on Schedule 13G to report the acquisition which 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. ☐
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. 63900P103
|
|
|
|
|
|
|
1.
|
|
Name of
Reporting Person
BTO CARBON HOLDINGS LP
|
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)
OO
|
5.
|
|
Check box if disclosure of legal
proceedings is required pursuant to Items 2(d) or 2(e)
☐
|
6.
|
|
Citizenship or place of
organization
Delaware
|
Number of
shares
beneficially
owned by
each
reporting
person
with
|
|
7.
|
|
Sole voting power
546,502*
|
|
8.
|
|
Shared voting power
0
|
|
9.
|
|
Sole dispositive power
546,502*
|
|
10.
|
|
Shared dispositive power
0
|
11.
|
|
Aggregate amount beneficially owned by each reporting person
546,502*
|
12.
|
|
Check box if the aggregate amount in
row (11) excludes certain shares
☐
|
13.
|
|
Percent of class represented by amount
in row (11)
4.27%*
|
14.
|
|
Type of reporting person
PN
|
*
|
Based on 12,232,006 common units representing limited partner interests (the
Common Units
) of Natural Resource Partners L.P. (the
Partnership
) outstanding as of February 24,
2017, which number is based on information set forth in the Annual Report of the Partnership on Form
10-K
for the fiscal year ended December 31, 2016 filed with the Securities and Exchange Commission on
March 6, 2017 (the
Partnership 2016
10-K
). The Reporting Person directly holds warrants to purchase 2,266,304 Common Units, which upon exercise, the Partnership may elect to settle in
Common Units or cash, each of which is mandatorily settled on a net basis based on the volume weighted average trading price of the Common Units on the exercise date. The aggregate amount of Common Units of which the Reporting Person may be deemed
to have beneficial ownership and the percentage of class represented by such amount reflected herein is based on net settlement of the warrants into Common Units based on the volume weighted average trading price of the Common Units on the New York
Stock Exchange on March 9, 2017 of $38.35 per Common Unit.
|
-2-
CUSIP No. 63900P103
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|
|
|
|
|
|
1.
|
|
Name of
Reporting Person
BTO HOLDINGS MANAGER L.L.C.
|
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)
OO
|
5.
|
|
Check box if disclosure of legal
proceedings is required pursuant to Items 2(d) or 2(e)
☐
|
6.
|
|
Citizenship or place of
organization
Delaware
|
Number of
shares
beneficially
owned by
each
reporting
person
with
|
|
7.
|
|
Sole voting power
546,502*
|
|
8.
|
|
Shared voting power
0
|
|
9.
|
|
Sole dispositive power
546,502*
|
|
10.
|
|
Shared dispositive power
0
|
11.
|
|
Aggregate amount beneficially owned by each reporting person
546,502*
|
12.
|
|
Check box if the aggregate amount in
row (11) excludes certain shares
☐
|
13.
|
|
Percent of class represented by amount
in row (11)
4.27%*
|
14.
|
|
Type of reporting person
OO
|
*
|
Based on 12,232,006 Common Units of the Partnership outstanding as of February 24, 2017, which number is based on information set forth in the Partnership 2016
10-K.
The
Reporting Person indirectly holds warrants to purchase 2,266,304 Common Units, which upon exercise, the Partnership may elect to settle in Common Units or cash, each of which is mandatorily settled on a net basis based on the volume weighted average
trading price of the Common Units on the exercise date. The aggregate amount of Common Units of which the Reporting Person may be deemed to have beneficial ownership and the percentage of class represented by such amount reflected herein is based on
net settlement of the warrants into Common Units based on the volume weighted average trading price of the Common Units on the New York Stock Exchange on March 9, 2017 of $38.35 per Common Unit.
|
-3-
CUSIP No. 63900P103
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1.
|
|
Name of
Reporting Person
BLACKSTONE TACTICAL OPPORTUNITIES ASSOCIATES L.L.C.
|
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)
OO
|
5.
|
|
Check box if disclosure of legal
proceedings is required pursuant to Items 2(d) or 2(e)
☐
|
6.
|
|
Citizenship or place of
organization
Delaware
|
Number of
shares
beneficially
owned by
each
reporting
person
with
|
|
7.
|
|
Sole voting power
546,502*
|
|
8.
|
|
Shared voting power
0
|
|
9.
|
|
Sole dispositive power
546,502*
|
|
10.
|
|
Shared dispositive power
0
|
11.
|
|
Aggregate amount beneficially owned by each reporting person
546,502*
|
12.
|
|
Check box if the aggregate amount in
row (11) excludes certain shares
☐
|
13.
|
|
Percent of class represented by amount
in row (11)
4.27%*
|
14.
|
|
Type of reporting person
OO
|
*
|
Based on 12,232,006 Common Units of the Partnership outstanding as of February 24, 2017, which number is based on information set forth in the Partnership 2016
10-K.
The
Reporting Person indirectly holds warrants to purchase 2,266,304 Common Units, which upon exercise, the Partnership may elect to settle in Common Units or cash, each of which is mandatorily settled on a net basis based on the volume weighted average
trading price of the Common Units on the exercise date. The aggregate amount of Common Units of which the Reporting Person may be deemed to have beneficial ownership and the percentage of class represented by such amount reflected herein is based on
net settlement of the warrants into Common Units based on the volume weighted average trading price of the Common Units on the New York Stock Exchange on March 9, 2017 of $38.35 per Common Unit.
|
-4-
CUSIP No. 63900P103
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|
|
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|
|
|
1.
|
|
Name of
Reporting Person
BTOA L.L.C.
|
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)
OO
|
5.
|
|
Check box if disclosure of legal
proceedings is required pursuant to Items 2(d) or 2(e)
☐
|
6.
|
|
Citizenship or place of
organization
Delaware
|
Number of
shares
beneficially
owned by
each
reporting
person
with
|
|
7.
|
|
Sole voting power
546,502*
|
|
8.
|
|
Shared voting power
0
|
|
9.
|
|
Sole dispositive power
546,502*
|
|
10.
|
|
Shared dispositive power
0
|
11.
|
|
Aggregate amount beneficially owned by each reporting person
546,502*
|
12.
|
|
Check box if the aggregate amount in
row (11) excludes certain shares
☐
|
13.
|
|
Percent of class represented by amount
in row (11)
4.27%*
|
14.
|
|
Type of reporting person
OO
|
*
|
Based on 12,232,006 Common Units of the Partnership outstanding as of February 24, 2017, which number is based on information set forth in the Partnership 2016
10-K.
The
Reporting Person indirectly holds warrants to purchase 2,266,304 Common Units, which upon exercise, the Partnership may elect to settle in Common Units or cash, each of which is mandatorily settled on a net basis based on the volume weighted average
trading price of the Common Units on the exercise date. The aggregate amount of Common Units of which the Reporting Person may be deemed to have beneficial ownership and the percentage of class represented by such amount reflected herein is based on
net settlement of the warrants into Common Units based on the volume weighted average trading price of the Common Units on the New York Stock Exchange on March 9, 2017 of $38.35 per Common Unit.
|
-5-
CUSIP No. 63900P103
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|
1.
|
|
Name of
Reporting Person
BLACKSTONE FAMILY TACTICAL OPPORTUNITIES INVESTMENT PARTNERSHIP ESC
L.P.
|
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)
OO
|
5.
|
|
Check box if disclosure of legal
proceedings is required pursuant to Items 2(d) or 2(e)
☐
|
6.
|
|
Citizenship or place of
organization
Delaware
|
Number of
shares
beneficially
owned by
each
reporting
person
with
|
|
7.
|
|
Sole voting power
3,302*
|
|
8.
|
|
Shared voting power
0
|
|
9.
|
|
Sole dispositive power
3,302*
|
|
10.
|
|
Shared dispositive power
0
|
11.
|
|
Aggregate amount beneficially owned by each reporting person
3,302*
|
12.
|
|
Check box if the aggregate amount in
row (11) excludes certain shares
☐
|
13.
|
|
Percent of class represented by amount
in row (11)
0.03%*
|
14.
|
|
Type of reporting person
PN
|
*
|
Based on 12,232,006 Common Units of the Partnership outstanding as of February 24, 2017, which number is based on information set forth in the Partnership 2016
10-K.
The
Reporting Person directly holds warrants to purchase 13,696 Common Units, which upon exercise, the Partnership may elect to settle in Common Units or cash, each of which is mandatorily settled on a net basis based on the volume weighted average
trading price of the Common Units on the exercise date. The aggregate amount of Common Units of which the Reporting Person may be deemed to have beneficial ownership and the percentage of class represented by such amount reflected herein is based on
net settlement of the warrants into Common Units based on the volume weighted average trading price of the Common Units on the New York Stock Exchange on March 9, 2017 of $38.35 per Common Unit.
|
-6-
CUSIP No. 63900P103
|
|
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|
|
|
1.
|
|
Name of
Reporting Person
BTO
SIDE-BY-SIDE
GP L.L.C.
|
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)
OO
|
5.
|
|
Check box if disclosure of legal
proceedings is required pursuant to Items 2(d) or 2(e)
☐
|
6.
|
|
Citizenship or place of
organization
Delaware
|
Number of
shares
beneficially
owned by
each
reporting
person
with
|
|
7.
|
|
Sole voting power
3,302*
|
|
8.
|
|
Shared voting power
0
|
|
9.
|
|
Sole dispositive power
3,302*
|
|
10.
|
|
Shared dispositive power
0
|
11.
|
|
Aggregate amount beneficially owned by each reporting person
3,302*
|
12.
|
|
Check box if the aggregate amount in
row (11) excludes certain shares
☐
|
13.
|
|
Percent of class represented by amount
in row (11)
0.03%*
|
14.
|
|
Type of reporting person
OO
|
*
|
Based on 12,232,006 Common Units of the Partnership outstanding as of February 24, 2017, which number is based on information set forth in the Partnership 2016
10-K.
The
Reporting Person indirectly holds warrants to purchase 13,696 Common Units, which upon exercise, the Partnership may elect to settle in Common Units or cash, each of which is mandatorily settled on a net basis based on the volume weighted average
trading price of the Common Units on the exercise date. The aggregate amount of Common Units of which the Reporting Person may be deemed to have beneficial ownership and the percentage of class represented by such amount reflected herein is based on
net settlement of the warrants into Common Units based on the volume weighted average trading price of the Common Units on the New York Stock Exchange on March 9, 2017 of $38.35 per Common Unit.
|
-7-
CUSIP No. 63900P103
|
|
|
|
|
|
|
1.
|
|
Name of
Reporting Person
BLACKSTONE HOLDINGS III L.P.
|
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)
OO
|
5.
|
|
Check box if disclosure of legal
proceedings is required pursuant to Items 2(d) or 2(e)
☐
|
6.
|
|
Citizenship or place of
organization
Quebec, Canada
|
Number of
shares
beneficially
owned by
each
reporting
person
with
|
|
7.
|
|
Sole voting power
549,805*
|
|
8.
|
|
Shared voting power
0
|
|
9.
|
|
Sole dispositive power
549,805*
|
|
10.
|
|
Shared dispositive power
0
|
11.
|
|
Aggregate amount beneficially owned by each reporting person
549,805*
|
12.
|
|
Check box if the aggregate amount in
row (11) excludes certain shares
☐
|
13.
|
|
Percent of class represented by amount
in row (11)
4.3%*
|
14.
|
|
Type of reporting person
PN
|
*
|
Based on 12,232,006 Common Units of the Partnership outstanding as of February 24, 2017, which number is based on information set forth in the Partnership 2016
10-K.
The
Reporting Person indirectly holds warrants to purchase 2,280,000 Common Units, which upon exercise, the Partnership may elect to settle in Common Units or cash, each of which is mandatorily settled on a net basis based on the volume weighted average
trading price of the Common Units on the exercise date. The aggregate amount of Common Units of which the Reporting Person may be deemed to have beneficial ownership and the percentage of class represented by such amount reflected herein is based on
net settlement of the warrants into Common Units based on the volume weighted average trading price of the Common Units on the New York Stock Exchange on March 9, 2017 of $38.35 per Common Unit.
|
-8-
CUSIP No. 63900P103
|
|
|
|
|
|
|
1.
|
|
Name of
Reporting Person
BLACKSTONE HOLDINGS III GP L.P.
|
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)
OO
|
5.
|
|
Check box if disclosure of legal
proceedings is required pursuant to Items 2(d) or 2(e)
☐
|
6.
|
|
Citizenship or place of
organization
Delaware
|
Number of
shares
beneficially
owned by
each
reporting
person
with
|
|
7.
|
|
Sole voting power
549,805*
|
|
8.
|
|
Shared voting power
0
|
|
9.
|
|
Sole dispositive power
549,805*
|
|
10.
|
|
Shared dispositive power
0
|
11.
|
|
Aggregate amount beneficially owned by each reporting person
549,805*
|
12.
|
|
Check box if the aggregate amount in
row (11) excludes certain shares
☐
|
13.
|
|
Percent of class represented by amount
in row (11)
4.3%*
|
14.
|
|
Type of reporting person
PN
|
*
|
Based on 12,232,006 Common Units of the Partnership outstanding as of February 24, 2017, which number is based on information set forth in the Partnership 2016
10-K.
The
Reporting Person indirectly holds warrants to purchase 2,280,000 Common Units, which upon exercise, the Partnership may elect to settle in Common Units or cash, each of which is mandatorily settled on a net basis based on the volume weighted average
trading price of the Common Units on the exercise date. The aggregate amount of Common Units of which the Reporting Person may be deemed to have beneficial ownership and the percentage of class represented by such amount reflected herein is based on
net settlement of the warrants into Common Units based on the volume weighted average trading price of the Common Units on the New York Stock Exchange on March 9, 2017 of $38.35 per Common Unit.
|
-9-
CUSIP No. 63900P103
|
|
|
|
|
|
|
1.
|
|
Name of
Reporting Person
BLACKSTONE HOLDINGS III GP MANAGEMENT L.L.C.
|
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)
OO
|
5.
|
|
Check box if disclosure of legal
proceedings is required pursuant to Items 2(d) or 2(e)
☐
|
6.
|
|
Citizenship or place of
organization
Delaware
|
Number of
shares
beneficially
owned by
each
reporting
person
with
|
|
7.
|
|
Sole voting power
549,805*
|
|
8.
|
|
Shared voting power
0
|
|
9.
|
|
Sole dispositive power
549,805*
|
|
10.
|
|
Shared dispositive power
0
|
11.
|
|
Aggregate amount beneficially owned by each reporting person
549,805*
|
12.
|
|
Check box if the aggregate amount in
row (11) excludes certain shares
☐
|
13.
|
|
Percent of class represented by amount
in row (11)
4.3%*
|
14.
|
|
Type of reporting person
OO
|
*
|
Based on 12,232,006 Common Units of the Partnership outstanding as of February 24, 2017, which number is based on information set forth in the Partnership 2016
10-K.
The
Reporting Person indirectly holds warrants to purchase 2,280,000 Common Units, which upon exercise, the Partnership may elect to settle in Common Units or cash, each of which is mandatorily settled on a net basis based on the volume weighted average
trading price of the Common Units on the exercise date. The aggregate amount of Common Units of which the Reporting Person may be deemed to have beneficial ownership and the percentage of class represented by such amount reflected herein is based on
net settlement of the warrants into Common Units based on the volume weighted average trading price of the Common Units on the New York Stock Exchange on March 9, 2017 of $38.35 per Common Unit.
|
-10-
CUSIP No. 63900P103
|
|
|
|
|
|
|
1.
|
|
Name of
Reporting Person
THE BLACKSTONE GROUP L.P.
|
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)
OO
|
5.
|
|
Check box if disclosure of legal
proceedings is required pursuant to Items 2(d) or 2(e)
☐
|
6.
|
|
Citizenship or place of
organization
Delaware
|
Number of
shares
beneficially
owned by
each
reporting
person
with
|
|
7.
|
|
Sole voting power
549,805*
|
|
8.
|
|
Shared voting power
0
|
|
9.
|
|
Sole dispositive power
549,805*
|
|
10.
|
|
Shared dispositive power
0
|
11.
|
|
Aggregate amount beneficially owned by each reporting person
549,805*
|
12.
|
|
Check box if the aggregate amount in
row (11) excludes certain shares
☐
|
13.
|
|
Percent of class represented by amount
in row (11)
4.3%*
|
14.
|
|
Type of reporting person
PN
|
*
|
Based on 12,232,006 Common Units of the Partnership outstanding as of February 24, 2017, which number is based on information set forth in the Partnership 2016
10-K.
The
Reporting Person indirectly holds warrants to purchase 2,280,000 Common Units, which upon exercise, the Partnership may elect to settle in Common Units or cash, each of which is mandatorily settled on a net basis based on the volume weighted average
trading price of the Common Units on the exercise date. The aggregate amount of Common Units of which the Reporting Person may be deemed to have beneficial ownership and the percentage of class represented by such amount reflected herein is based on
net settlement of the warrants into Common Units based on the volume weighted average trading price of the Common Units on the New York Stock Exchange on March 9, 2017 of $38.35 per Common Unit.
|
-11-
CUSIP No. 63900P103
|
|
|
|
|
|
|
1.
|
|
Name of
Reporting Person
BLACKSTONE GROUP MANAGEMENT L.L.C.
|
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)
OO
|
5.
|
|
Check box if disclosure of legal
proceedings is required pursuant to Items 2(d) or 2(e)
☐
|
6.
|
|
Citizenship or place of
organization
Delaware
|
Number of
shares
beneficially
owned by
each
reporting
person
with
|
|
7.
|
|
Sole voting power
549,805*
|
|
8.
|
|
Shared voting power
0
|
|
9.
|
|
Sole dispositive power
549,805*
|
|
10.
|
|
Shared dispositive power
0
|
11.
|
|
Aggregate amount beneficially owned by each reporting person
549,805*
|
12.
|
|
Check box if the aggregate amount in
row (11) excludes certain shares
☐
|
13.
|
|
Percent of class represented by amount
in row (11)
4.3%*
|
14.
|
|
Type of reporting person
OO
|
*
|
Based on 12,232,006 Common Units of the Partnership outstanding as of February 24, 2017, which number is based on information set forth in the Partnership 2016
10-K.
The
Reporting Person indirectly holds warrants to purchase 2,280,000 Common Units, which upon exercise, the Partnership may elect to settle in Common Units or cash, each of which is mandatorily settled on a net basis based on the volume weighted average
trading price of the Common Units on the exercise date. The aggregate amount of Common Units of which the Reporting Person may be deemed to have beneficial ownership and the percentage of class represented by such amount reflected herein is based on
net settlement of the warrants into Common Units based on the volume weighted average trading price of the Common Units on the New York Stock Exchange on March 9, 2017 of $38.35 per Common Unit.
|
-12-
CUSIP No. 63900P103
|
|
|
|
|
|
|
1.
|
|
Name of
Reporting Person
STEPHEN A. SCHWARZMAN
|
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)
OO
|
5.
|
|
Check box if disclosure of legal
proceedings is required pursuant to Items 2(d) or 2(e)
☐
|
6.
|
|
Citizenship or place of
organization
United States
|
Number of
shares
beneficially
owned by
each
reporting
person
with
|
|
7.
|
|
Sole voting power
549,805*
|
|
8.
|
|
Shared voting power
0
|
|
9.
|
|
Sole dispositive power
549,805*
|
|
10.
|
|
Shared dispositive power
0
|
11.
|
|
Aggregate amount beneficially owned by each reporting person
549,805*
|
12.
|
|
Check box if the aggregate amount in
row (11) excludes certain shares
☐
|
13.
|
|
Percent of class represented by amount
in row (11)
4.3%*
|
14.
|
|
Type of reporting person
IN
|
*
|
Based on 12,232,006 Common Units of the Partnership outstanding as of February 24, 2017, which number is based on information set forth in the Partnership 2016
10-K.
The
Reporting Person indirectly holds warrants to purchase 2,280,000 Common Units, which upon exercise, the Partnership may elect to settle in Common Units or cash, each of which is mandatorily settled on a net basis based on the volume weighted average
trading price of the Common Units on the exercise date. The aggregate amount of Common Units of which the Reporting Person may be deemed to have beneficial ownership and the percentage of class represented by such amount reflected herein is based on
net settlement of the warrants into Common Units based on the volume weighted average trading price of the Common Units on the New York Stock Exchange on March 9, 2017 of $38.35 per Common Unit.
|
-13-
CUSIP No. 63900P103
Item 1.
|
Security and Issuer.
|
This Statement on Schedule 13D (this
Schedule 13D
) relates to
the common units representing limited partner interests (the
Common Units
) of Natural Resource Partners L.P., a Delaware limited partnership (the
Partnership
), which has its principal executive offices at 1201
Louisiana St., Suite 3400, Houston, Texas 77002, United States of America.
Item 2.
|
Identity and Background.
|
(a) (b) Each of the following is hereinafter individually referred to
as a
Reporting Person
and collectively as the
Reporting Persons
. This statement is filed on behalf of:
|
i.
|
BTO Carbon Holdings LP, a Delaware limited partnership,
|
|
ii.
|
Blackstone Family Tactical Opportunities Investment Partnership ESC L.P., a Delaware limited partnership (together with BTO Carbon Holdings LP
Blackstone Purchasers
and each a
Blackstone
Purchaser
),
|
|
iii.
|
BTO Holdings Manager L.L.C., a Delaware limited liability company,
|
|
iv.
|
Blackstone Tactical Opportunities Associates L.L.C., a Delaware limited liability company,
|
|
v.
|
BTOA L.L.C., a Delaware limited liability company,
|
|
vi.
|
BTO
Side-by-Side
GP L.L.C., a Delaware limited liability company,
|
|
vii.
|
Blackstone Holdings III L.P., a Québec société en commandite,
|
|
viii.
|
Blackstone Holdings III GP L.P., a Delaware limited partnership,
|
|
ix.
|
Blackstone Holdings III GP Management L.L.C., a Delaware limited liability company,
|
|
x.
|
The Blackstone Group L.P., a Delaware limited partnership,
|
|
xi.
|
Blackstone Group Management L.L.C., a Delaware limited liability company (each of the foregoing a
Blackstone
entity), and
|
|
xii.
|
Stephen A. Schwarzman, a citizen of the United States of America.
|
The principal business address of each of
the Blackstone entities and Mr. Schwarzman is c/o The Blackstone Group L.P., 345 Park Avenue, New York, New York 10154.
(c) The principal business of
BTO Carbon Holdings LP consists of investing in the Partnership. The principal business of Blackstone Family Tactical Opportunities Investment Partnership ESC L.P. consists of making various investments.
The principal business of BTO Holdings Manager L.L.C. is performing the functions of, and serving as, the general partner of BTO Carbon Holdings LP, and other
affiliated Blackstone entities. The principal business of Blackstone Tactical Opportunities Associates L.L.C. is performing the functions of, and serving as, the managing member of BTO Holdings Manager L.L.C. and performing the functions of, and
serving as, the general partner (or similar position) of other affiliated Blackstone entities. The principal business of BTOA L.L.C. is performing the functions of, and serving as, the sole member of Blackstone Tactical Opportunities Associates
L.L.C.
The principal business of BTO
Side-by-Side
GP L.L.C. is performing
the functions of, and serving as, the general partner of Blackstone Family Tactical Opportunities Investment Partnership ESC L.P.
-14-
CUSIP No. 63900P103
The principal business of Blackstone Holdings III L.P. is performing the functions of, and serving as, the
managing member (or similar position) and member or equity holder in various affiliated Blackstone entities. The principal business of Blackstone Holdings III GP L.P. is performing the functions of, and serving as, the general partner of Blackstone
Holdings III L.P., and other affiliated Blackstone entities. The principal business of Blackstone Holdings III GP Management L.L.C. is performing the functions of, and serving as, the general partner of Blackstone Holdings III GP L.P., and other
affiliated Blackstone entities.
The principal business of The Blackstone Group L.P. is performing the functions of, and serving as, the sole member of
Blackstone Holdings III GP Management L.L.C., and in a similar capacity for other affiliated Blackstone entities. The principal business of Blackstone Group Management L.L.C. is performing the functions of, and serving as, the general partner of The
Blackstone Group L.P.
The principal occupation of Mr. Schwarzman is serving as an executive of Blackstone Group Management L.L.C.
(d) During the last five years, none of the Reporting Persons has been convicted in a criminal proceeding (excluding traffic violations or similar
misdemeanors).
(e) During the last five years, none of the Reporting Persons has been a party to a civil proceeding of a judicial or administrative body
of competent jurisdiction and, as a result of such proceeding, was or is subject to a judgment, decree or final order enjoining future violations of, or prohibiting or mandating activities subject to, federal or state securities laws or finding any
violation with respect to such laws.
(f) See Item 2(a) (b) above for citizenship of each of the Reporting Persons.
Item 3.
|
Source and Amount of Funds or Other Consideration.
|
On March 2, 2017, pursuant to the Preferred
Unit and Warrant Purchase Agreement dated February 22, 2017 by and among the Partnership, the Blackstone Purchasers and certain other purchasers affiliated with GoldenTree Asset Management LP and named therein (the
Purchase
Agreement
), the Blackstone Purchasers collectively purchased 142,500 Class A Convertible Preferred Units (
Preferred Units
) of the Partnership for a cash purchase price of $1,000 per Preferred Unit (the
Per
Unit Purchase Price
), less a 1.25% origination fee, a 1.25% structuring fee and certain expenses reimbursed by the Partnership, for total net payment of $136,093,750 in the aggregate. The Preferred Units are not convertible into Common
Units prior to March 2, 2022, and thereafter are convertible only on certain conditions specified in the Partnerships Fifth Amended and Restated Agreement of Limited Partnership (the
LPA
).
Also on March 2, 2017, pursuant to the Purchase Agreement, the Partnership issued two tranches of warrants (the
Warrants
) to the
Blackstone Purchasers to purchase Common Units (Warrants to purchase 997,500 Common Units with an exercise price of $22.81 and Warrants to purchase 1,282,500 Common Units with an exercise price of $34.00). The holders of the Warrants may exercise
the Warrants at any time before March 2, 2025. Upon the exercise of the Warrants, the Partnership shall elect whether to settle the Warrants in Common Units or cash, each on a net basis. If the Partnership elects to settle the Warrants in
Common Units, the number of Common Units to be issued will be based upon the volume weighted average price of the Common Units upon the date such Warrants are exercised.
The Blackstone Purchasers payment of their portion of the aggregate purchase price was funded by capital contributions by the Blackstone
Purchasers partners.
The description of the Purchase Agreement, the Preferred Units, the Warrants and the LPA in this Item 3 is not intended to be
complete and is qualified in its entirety by the agreement and warrants that are filed as exhibits hereto and are incorporated by reference herein.
-15-
CUSIP No. 63900P103
Item 4.
|
Purpose of Transaction.
|
The Blackstone Purchasers purchased the Preferred Units and the Warrants
pursuant to the Purchase Agreement for investment purposes, subject to the following:
In connection with the consummation of the transactions contemplated
by the Purchase Agreement, the Blackstone Purchasers entered into a Board Representation and Observation Rights Agreement (the
Board Representation Agreement
) dated March 2, 2017 by and among the Blackstone Purchasers, the
Partnership and certain other parties thereto. Pursuant to the Board Representation Agreement, GP Natural Resource Partners LLC, the general partner of the Partnerships general partner, appointed one person designated by the Blackstone
Purchasers to its board of directors (the
GP LLC Board
) and one person designated by the Blackstone Purchasers as an observer to attend the meetings of the GP LLC Board. Pursuant to the Board Representation Agreement, the
Blackstone Purchasers have appointed Jasvinder Khaira as their designee on the GP LLC Board and David Kaden as their board observer. Each of Messrs. Khaira and Kaden is an employee of The Blackstone Group L.P. or one of its affiliates. The
Blackstone Purchasers right to appoint one member of the GP LLC Board and an observer shall terminate at such time as the Blackstone Purchasers, together with their affiliates, no longer own at least 20% of the total number of the Preferred
Units (together with the Preferred Units deemed to be owned in respect of Common Units previously issued upon conversion of Preferred Units) issued by the Partnership pursuant to the Purchase Agreement to all purchasers on March 2, 2017,
together with all PIK Units (as defined below) that have been issued but not redeemed at such time. The representation afforded to the Blackstone Purchasers by the appointment of a member of the GP LLC Board and an observer may allow the Reporting
Persons to have influence over the corporate activities of the Partnership, including activities that may relate to items described in subparagraphs (a) through (j) of Item 4 of Schedule 13D.
The description of the Purchase Agreement, the Preferred Units, the Warrants and the Board Representation Agreement in this Item 4 is not intended to be
complete and is qualified in its entirety by the agreements and warrants that are filed as exhibits hereto and are incorporated by reference herein.
The
Reporting Persons intend to review on a continuing basis the Blackstone Purchasers investment in the Partnership. As a result of the Reporting Persons continuous review and evaluation of the business of the Partnership, the Reporting
Persons may communicate with the GP LLC Board, members of management and/or other partners or other relevant parties from time to time with respect to operational, strategic, financial or governance matters or otherwise work with management and the
GP LLC Board with a view to maximizing the returns of the Partnership. Subject to the agreements described herein, the Reporting Persons may seek to sell or otherwise dispose some or all of the Partnerships securities (which may include, but
is not limited to, transferring some or all of such securities to its affiliates or distributing some or all of such securities to such Reporting Persons respective partners, members or beneficiaries, as applicable) from time to time, and/or
may seek to acquire additional securities of the Partnership (which may include rights or securities exercisable or convertible into securities of the Partnership) from time to time, in each case, in open market or private transactions, block sales
or otherwise. Any transaction that the Reporting Persons may pursue may be made at any time and from time to time without prior notice and will depend on a variety of factors, including, without limitation, the price and availability of the
Partnerships securities, subsequent developments affecting the Partnership, the Partnerships business and prospects, other investment and business opportunities available to the Reporting Persons, general industry and economic
conditions, the securities markets in general, tax considerations and other factors deemed relevant by the Reporting Persons.
Other than as described in
this Item 4, none of the Reporting Persons has any current plans or proposals that relate to or that would result in any of the transactions or other matters specified in clauses (a) through (j) of Item 4 of Schedule 13D; provided, that the
Reporting Persons at any time and from time to time, may review or reconsider and change their position and/or change their purpose and/or develop such plans and may seek to influence management of the Partnership or the GP LLC Board with respect to
the business and affairs of the Partnership, and may from time to time consider pursuing or proposing any such transactions with advisors, the Partnership or other persons.
Item 5.
|
Interest in Securities of the Issuer.
|
The information set forth or incorporated in Items 3 and 6 of
this Schedule 13D is hereby incorporated by reference in its entirety into this Item 5.
-16-
CUSIP No. 63900P103
Calculations of the number of Common Units beneficially owned by a Reporting Person in this Schedule 13D
assume (a) the Partnership elects to
net-settle
the Warrants in Common Units and (b) that the Common Units issuable on exercise of the Warrants were determined using the volume weighted average price
of the Common Units traded on the New York Stock Exchange on March 9, 2017.
(a) (b) Calculations of the number of Common Units beneficially
owned by a Reporting Person assume that the Partnership shall
net-settle
each exercise of Warrants beneficially owned by such Reporting Person in Common Units using a volume weighted average trading price of
$38.35 for the Common Units traded on the New York Stock Exchange on March 9, 2017.
Calculations of the percentage of the Common Units beneficially
owned assumes that there are 12,232,006 Common Units outstanding as of February 24, 2017, which number is based on information set forth in the Annual Report of the Partnership on Form
10-K
for the fiscal
year ended December 31, 2016 filed with the Securities and Exchange Commission on March 6, 2017 (the
Partnership 2016
10-K
) plus all Common Units that the relevant Reporting Person
may be deemed to beneficially own upon exercises of the Warrants that are
net-settled
by the Partnership in Common Units using a volume weighted average trading price of $38.35 for the Common Units traded on
the New York Stock Exchange on March 9, 2017.
Pursuant to the terms of the Warrants, the Partnership has the right to elect to settle an exercise of
the Warrants in cash equal to the market value of the Common Units in respect of which the Warrants are being exercised less the aggregate Warrant exercise price. To the extent that the Company exercises its rights to cash settle the exercise of the
Warrants, the Reporting Persons shall not beneficially own the Common Units underlying the Warrants.
The aggregate number and percentage of Common Units
beneficially owned by each Reporting Person and, for each Reporting Person, the number of Common Units as to which there is sole power to vote or to direct the vote, shared power to vote or to direct the vote, sole power to dispose or to direct the
disposition, or shared power to dispose or to direct the disposition assume that the Partnership shall
net-settle
each exercise of Warrants in Common Units using a volume weighted average trading price of
$38.35 on March 9, 2017 and are set forth on rows 7 through 11 and row 13 of the cover pages of this Schedule 13D and are incorporated herein by reference.
As of the date hereof, BTO Carbon Holdings LP directly holds Warrants to purchase 2,266,304 Common Units and Blackstone Family Tactical Opportunities
Investment Partnership ESC L.P. directly holds Warrants to purchase 13,696 Common Units, which Warrants are subject to mandatory net settlement as described above.
BTO Holdings Manager L.L.C. is the general partner of BTO Carbon Holdings LP. Blackstone Tactical Opportunities Associates L.L.C. is the managing member of
BTO Holdings Manager L.L.C. BTOA L.L.C. is the sole member of Blackstone Tactical Opportunities Associates L.L.C.
BTO
Side-by-Side
GP L.L.C. is the general partner of Blackstone Family Tactical Opportunities Investment Partnership ESC L.P.
Blackstone Holdings III L.P. is the managing member of BTOA L.L.C. and the sole member of BTO
Side-by-Side
GP L.L.C. Blackstone Holdings III GP L.P. is the general partner of Blackstone Holdings III L.P. Blackstone Holdings III GP Management L.L.C. is the general
partner of Blackstone Holdings III GP L.P.
The Blackstone Group L.P. is the sole member of Blackstone Holdings III GP Management L.L.C. Blackstone Group
Management L.L.C. is the general partner of The Blackstone Group L.P., and is wholly owned by Blackstones senior managing directors and controlled by its founder, Stephen A. Schwarzman.
Neither the filing of this Schedule 13D nor any of its contents shall be deemed to constitute an admission that any of the Reporting Persons (other than the
Blackstone Purchasers to the extent they directly hold the Common Units reported on this Schedule 13D) is the beneficial owner of the Common Units referred to herein for purposes of Section 13(d) of the Securities Exchange Act of 1934, as amended,
or for any other purpose, and such beneficial ownership is expressly disclaimed. Each Reporting Person expressly disclaims any assertion or presumption that it and the other persons on whose behalf this statement is filed constitute a
group.
-17-
CUSIP No. 63900P103
(c) Except as set forth herein, none of the Reporting Persons has engaged in any transaction during the past
60 days in any securities of the Partnership.
(d) To the best knowledge of the Reporting Persons, no one other than the Reporting Persons has the right to
receive or the power to direct the receipt of dividends from, or the proceeds from the sale of, any of the securities of the Partnership reported on this Schedule 13D.
(e) Not applicable.
Item 6.
|
Contracts, Arrangements, Understandings or Relationships With Respect to Securities of the Issuer.
|
The
information set forth in Items 3, 4 and 5 of this Schedule 13D is hereby incorporated by reference.
LPA
The preferences, limitations, powers and relative rights of the Preferred Units are set forth in the LPA. The Preferred Units entitle the holders to receive
cumulative dividends at a rate of 12% per year, up to one half of which the Partnership may satisfy in additional Preferred Units (such additional Preferred Units, the
PIK Units
). The Preferred Units have a perpetual term, unless
converted or redeemed as described below. The Preferred Units (including any PIK Units) are convertible into Common Units at the election of the holders (1) after the fifth anniversary and prior to the eighth anniversary of the issue date at a
7.5% discount to the volume weighted average trading price of the Common Units (the
VWAP
) for the 30 trading days immediately prior to the notice of conversion if the
30-day
VWAP immediately
prior to such notice is greater than $51.00 (subject to a maximum conversion of 33% of the Preferred Units in any 12 month period) and (2) after the eighth anniversary of the issue date at a 10% discount to the VWAP for the 30 trading days
immediately prior to the notice of conversion. Instead of issuing Common Units pursuant to clause (1) of the preceding sentence, the Partnership may, at its option, redeem the Preferred Units proposed to be converted for cash at a price equal
to the Per Unit Purchase Price, plus the value of any accrued and unpaid distributions. To the extent the holders of the Preferred Units have not elected to convert their Preferred Units by the twelfth anniversary of the issue date, the Partnership
may require, at its option, conversion of the Preferred Units into Common Units at a 10% discount to the VWAP for the 30 trading days immediately prior to the notice of conversion. In addition, at any time after the issue date, the Partnership may
redeem all or any portion of the Preferred Units (including PIK Units) for cash at the agreed upon per unit amount, which is calculated as the greater of (A) the Per Unit Purchase Price multiplied by (i) prior to the third anniversary of
the closing date, 1.50, (ii) on or after the third anniversary of the closing date and prior to the fourth anniversary of the closing date, 1.70 and (iii) on or after the fourth anniversary of the closing date, 1.85 and (B) the Per Unit
Purchase Price plus the value of all accrued and unpaid distributions in respect of the units to be redeemed.
The terms of the Preferred Units contain
certain restrictions on the Partnerships ability to pay distributions on its Common Units. To the extent that either (i) the Partnerships consolidated leverage ratio is greater than 3.25x, or (ii) the ratio of the
Partnerships distributable cash flow to cash distributions made or proposed to be made is less than 1.2x (in each case, with respect to the most recently completed four-quarter period), the Partnership may not increase the quarterly
distribution above $0.45 per quarter without the approval of the holders of a majority of the outstanding Preferred Units. In addition, if at any time after January 1, 2022, any PIK Units are outstanding, the Partnership may not make
distributions on its Common Units until it has redeemed all PIK Units for cash.
The holders of the Preferred Units have the right to vote with holders of
the Common Units on an
as-converted
basis and have other customary approval rights with respect to changes of the terms of the Preferred Units. In addition, the Blackstone Purchasers have certain approval
rights over certain matters, including: the incurrence of new indebtedness, subject to certain exceptions; material changes to the Partnerships business; acquisitions, divestitures and capital expenditures in excess of certain dollar
thresholds; amendments to material contracts resulting in a cash impact to the Partnership in excess of certain dollar thresholds; settlement of certain litigations or regulatory matters; and amendments to related party contracts outside of the
ordinary course of business.
-18-
CUSIP No. 63900P103
Registration Rights Agreement
On March 2, 2017, the Blackstone Purchasers also entered into a registration rights agreement (
Registration Rights Agreement
) by and
among the Partnership, the Blackstone Purchasers and certain other purchasers affiliated with GoldenTree Asset Management LP. Pursuant to the Registration Rights Agreement, the Partnership shall file (i) a shelf registration statement to
register the Common Units issuable upon exercise of the Warrants and to cause such registration statement to become effective not later than 90 days following March 2, 2017 and (ii) a shelf registration statement to register the Common
Units issuable upon conversion of the Preferred Units and to cause such registration statement to become effective not later than the earlier of March 2, 2022 or 90 days following the first issuance of any Common Units upon conversion of
Preferred Units (the
Registration Deadlines
). In addition, the Registration Rights Agreement gives the Blackstone Purchasers piggyback registration and demand underwritten offering rights under certain circumstances. If the shelf
registration statements are not effective by the Registration Deadlines, the Partnership will be required to pay the Blackstone Purchasers certain liquidated damages in the amounts and upon the terms set forth in the Registration Rights Agreement.
The description of the LPA and the Registration Rights Agreement in this Item 6 is not intended to be complete and is qualified in its entirety by the
agreements and warrants that are filed as exhibits hereto and are incorporated by reference herein.
Item 7.
|
Material to be Filed as Exhibits.
|
|
1.
|
Joint Filing Agreement, dated March 13, 2017, among the Reporting Persons (filed herewith).
|
|
2.
|
Purchase Agreement dated as of February 22, 2017 by and among the Partnership, the Blackstone Purchasers and certain other purchasers affiliated with GoldenTree Asset Management LP named therein (incorporated
herein by reference to Exhibit 10.1 to the Current Report on Form
8-K
of the Partnership, filed on March 6, 2017).
|
|
3.
|
Warrant dated as of March 2, 2017 issued by the Partnership to BTO Carbon Holdings LP to purchase 991,508 Common Units with exercise price of $22.81 (filed herewith).
|
|
4.
|
Warrant dated as of March 2, 2017 issued by the Partnership to BTO Carbon Holdings LP to purchase 1,274,796 Common Units with exercise price of $34.00 (filed herewith).
|
|
5.
|
Warrant dated as of March 2, 2017 issued by the Partnership to Blackstone Family Tactical Opportunities Investment Partnership ESC L.P. to purchase 5,992 Common Units with exercise price of $22.81 (filed herewith).
|
|
6.
|
Warrant dated as of March 2, 2017 issued by the Partnership to Blackstone Family Tactical Opportunities Investment Partnership ESC L.P. to purchase 7,704 Common Units with exercise price of $34.00 (filed herewith).
|
|
7.
|
Board Representation and Observation Rights Agreement dated March 2, 2017 by and among the Blackstone Purchasers, the Partnership and certain other parties named therein (incorporated herein by reference to Exhibit
10.2 to the Current Report on Form
8-K
of the Partnership, filed on March 6, 2017).
|
|
8.
|
Fifth Amended and Restated Agreement of Limited Partnership of the Partnership dated March 2, 2017 (incorporated herein by reference to Exhibit 3.1 to the Current Report on Form
8-K
of the Partnership, filed on March 6, 2017).
|
|
9.
|
Registration Rights Agreement dated as of March 2, 2017 by and among the Partnership, the Blackstone Purchasers and certain other purchasers affiliated with GoldenTree Asset Management LP named therein
(incorporated herein by reference to Exhibit 4.2 to the Current Report on Form
8-K
of the Partnership, filed on March 6, 2017).
|
-19-
CUSIP No. 63900P103
SIGNATURE
After reasonable inquiry and to the best of their knowledge and belief, I certify that the information set forth in this statement is true,
complete and correct.
Date: March 13, 2017
|
|
|
BTO CARBON HOLDINGS LP
|
By: BTO Holdings Manager L.L.C., its general partner
|
|
|
By:
|
|
/s/ Christopher J. James
|
Name:
|
|
Christopher J. James
|
Title:
|
|
Authorized Person
|
|
BTO HOLDINGS MANAGER L.L.C.
|
|
|
By:
|
|
/s/ Christopher J. James
|
Name:
|
|
Christopher J. James
|
Title:
|
|
Authorized Person
|
|
BLACKSTONE TACTICAL OPPORTUNITIES ASSOCIATES L.L.C.
|
|
|
By:
|
|
/s/ Christopher J. James
|
Name:
|
|
Christopher J. James
|
Title:
|
|
Authorized Person
|
|
BTOA L.L.C.
|
|
|
By:
|
|
/s/ Christopher J. James
|
Name:
|
|
Christopher J. James
|
Title:
|
|
Authorized Person
|
|
BLACKSTONE FAMILY TACTICAL OPPORTUNITIES INVESTMENT PARTNERSHIP ESC L.P.
|
By: BTO
Side-by-Side
GP L.L.C., its general partner
|
|
|
By:
|
|
/s/ Christopher J. James
|
Name:
|
|
Christopher J. James
|
Title:
|
|
Chief Legal Officer
|
|
BTO
SIDE-BY-SIDE
GP L.L.C.
|
|
|
By:
|
|
/s/ Christopher J. James
|
Name:
|
|
Christopher J. James
|
Title:
|
|
Authorized Person
|
-20-
CUSIP No. 63900P103
|
|
|
|
BLACKSTONE HOLDINGS III L.P.
|
By: Blackstone Holdings III GP L.P., its general partner
|
By: Blackstone Holdings III GP Management L.L.C., its general partner
|
|
|
By:
|
|
/s/ John G. Finley
|
Name:
|
|
John G. Finley
|
Title:
|
|
Chief Legal Officer
|
|
BLACKSTONE HOLDINGS III GP L.P.
By:
Blackstone Holdings III GP Management L.L.C., its general partner
|
|
|
By:
|
|
/s/ John G. Finley
|
Name:
|
|
John G. Finley
|
Title:
|
|
Chief Legal Officer
|
|
BLACKSTONE HOLDINGS III GP MANAGEMENT L.L.C.
|
|
|
By:
|
|
/s/ John G. Finley
|
Name:
|
|
John G. Finley
|
Title:
|
|
Chief Legal Officer
|
|
THE BLACKSTONE GROUP L.P.
|
By: Blackstone Group Management L.L.C., its general partner
|
|
|
By:
|
|
/s/ John G. Finley
|
Name:
|
|
John G. Finley
|
Title:
|
|
Chief Legal Officer
|
|
BLACKSTONE GROUP MANAGEMENT L.L.C.
|
|
|
By:
|
|
/s/ John G. Finley
|
Name:
|
|
John G. Finley
|
Title:
|
|
Chief Legal Officer
|
|
STEPHEN A. SCHWARZMAN
|
|
|
By:
|
|
/s/ Stephen A. Schwarzman
|
Name:
|
|
Stephen A. Schwarzman
|
-21-