Alliance Resource Partners, L.P. Announces Redemption of Series A-1 Preferred Interests by Kodiak
February 08 2019 - 6:10PM
Business Wire
Alliance Resource Partners, L.P. (NASDAQ: ARLP) today announced
that its Series A-1 Preferred Interests ("Preferred Interests") in
Kodiak Gas Services, LLC ("Kodiak") have been redeemed by Kodiak
for an immediate cash payment of $135,000,000 (the "Purchase
Price").
On July 19, 2017, Alliance Minerals, LLC, a wholly owned
subsidiary of ARLP, purchased $100 million of Preferred Interests
from Kodiak, a privately-held company providing large-scale,
high-utilization gas compression assets to customers operating
primarily in the Permian Basin. This structured investment provided
ARLP with quarterly distributions of cash or additional Preferred
Interests. As of December 31, 2018, ARLP’s investment had increased
to $122.1 million due to the distribution by Kodiak of additional
paid-in-kind Preferred Interests.
ARLP was notified on January 26, 2019 that Kodiak intended to
exercise its option to purchase the Preferred Interests and, on
February 8, 2019, we received payment of the Purchase Price. As a
result of this transaction, ARLP will record in the first quarter
of 2019 income of $12.9 million, inclusive of an $11.5 million
early redemption premium.
About Alliance Resource Partners, L.P.
ARLP is a diversified natural resource company that generates
income from coal production and oil and gas mineral interests
located in strategic producing regions across the United
States.
ARLP currently produces coal from eight mining complexes it
operates in Illinois, Indiana, Kentucky, Maryland and West
Virginia. ARLP also operates a coal loading terminal on the Ohio
River at Mount Vernon, Indiana. ARLP markets its coal production to
major domestic and international utilities and industrial users and
is currently the second largest coal producer in the eastern United
States.
ARLP generates royalty income from mineral interests it owns in
premier oil and gas producing regions in the United States,
primarily the Anadarko, Permian, Williston and Appalachian
basins.
ARLP also generates income from a variety of other sources.
News, unit prices and additional information about ARLP,
including filings with the Securities and Exchange Commission
("SEC"), are available at http://www.arlp.com. For more
information, contact the investor relations department of ARLP at
(918) 295-7674 or via e-mail at investorrelations@arlp.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20190208005473/en/
Brian L. CantrellAlliance Resource Partners, L.P.(918)
295-7673
Alliance Resource Partners (NASDAQ:ARLP)
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