Illinois coal producer Foresight Energy LP announced June 23 that it has completed its initial public offering of 17,500,000 common units representing limited partner interests in Foresight Energy at $20 per common unit.
Foresight Energy has granted the underwriters a 30-day option to purchase up to an additional 2,625,000 common units to cover over-allotments, if any. If the underwriters do not exercise their option to purchase additional common units, Foresight Energy will issue 2,625,000 common units to Foresight Reserves LP and a member of management, pro rata upon the option’s expiration for no additional consideration. The common units trade on the New York Stock Exchange under the symbol “FELP.”
The common units offered to the public represent a 13.5% limited partner interest in Foresight Energy, or a 15.5% limited partner interest if the underwriters exercise, in full, their option to purchase additional common units. Foresight Reserves and a member of management collectively hold an 86.5% limited partner interest in Foresight Energy, or an 84.5% limited partner interest if the underwriters exercise, in full, their option to purchase additional units.
Foresight Energy, founded by coal operator Chris Cline, is a leading high-sulfur coal producer in the Illinois Basin with over three billion tons of coal reserves currently supporting four mining complexes. The company’s development in recent years was aided by a series of new SO2 emissions controls being added to power plants in the U.S., allowing many of those plants to burn this type of high-sulfur coal and still meet emissions standards.