Kentucky-based coal producer Rhino Resource Partners LP (NYSE: RNO) announced Sept. 9 the commencement of a public offering of 1,100,000 common units representing limited partner interests in Rhino.
In connection with the offering, Rhino said it expects to grant the underwriter a 30-day option to purchase up to 165,000 additional common units.
Rhino plans to use the net proceeds from this offering, and the related capital contribution by its general partner, to repay borrowings outstanding under its revolving credit facility. If the underwriter exercises its option to purchase additional common units, Rhino intends to use the additional net proceeds and related capital contribution by its general partner to repay borrowings outstanding under its revolving credit facility.
The common units will be offered and sold under an effective shelf registration statement on Form S-3 previously filed with the Securities and Exchange Commission. Raymond James & Associates is the sole underwriter for the offering.
Rhino is a diversified energy limited partnership that is focused on coal, oil and natural gas and related energy infrastructure. Rhino produces metallurgical and steam coal in a variety of basins throughout the U.S., manages and leases coal properties and owns oil and natural gas acreage in the Utica Shale and Cana Woodford regions.