CNX Coal Resources LP, formed by CONSOL Energy (NYSE: CNX), announced June 30 that it has priced its initial public offering of 5,000,000 common units representing limited partner interests at a price to the public of $15.00 per common unit.
The common units were scheduled to begin trading on the New York Stock Exchange on July 1 under the ticker symbol “CNXC.” The underwriters of the offering have a 30-day option to purchase up to an additional 750,000 common units to cover over-allotments, if any.
Separately, certain funds managed by Greenlight Capital and its affiliates have entered into a common unit purchase agreement with CNX Coal Resources pursuant to which Greenlight Capital has agreed to purchase, and CNX Coal Resources has agreed to sell, 5,000,000 common units at a price per unit equal to $15.00 in a concurrent private placement transaction. The closing of the concurrent private placement is conditioned upon the closing of the initial public offering on or before July 9, as well as certain customary closing conditions and will be completed concurrently with the closing of the initial public offering.
At the conclusion of the initial public offering, the public will own a 21.1% limited partner interest in CNX Coal Resources (or a 24.3% limited partner interest if the underwriters exercise in full their option to purchase additional common units). After the completion of IPO and the closing of the concurrent private placement of units to Greenlight Capital, CONSOL will own a 55.8% limited partner interest in CNX Coal Resources (or a 52.6% limited partner interest if the underwriters exercise in full their option to purchase additional common units). In addition, CONSOL will own, through its ownership of CNX Coal Resources GP LLC, the general partner of CNX Coal Resources, a 2% general partner interest and the incentive distribution rights in CNX Coal Resources.
CNX Coal Resources is a growth-oriented master limited partnership recently formed by CONSOL to manage and further develop all of CONSOL’s active thermal coal operations in Pennsylvania. Its initial assets include a 20% undivided interest in, and operational control over, CONSOL’s Pennsylvania mining complex, which consists of three underground, longwall-equipped mines (Bailey, Enlow Fork and Harvey) and related infrastructure.