Rhino Resource Partners LP (OTCQB: RHNO) on Jan. 7 announced that a binding term sheet agreement has been completed between Royal Energy Resources Inc. and Wexford Capital LP where Royal will acquire 6,769,112 issued and outstanding common units of the Partnership currently owned by Wexford.
The binding Term Sheet also includes the acquisition by Royal at a later date of all of the issued and outstanding membership interests of Rhino GP LLC, the general partner of Rhino, as well as 9,455,252 issued and outstanding subordinated units of the Partnership currently owned by Wexford. Under the executed binding Term Sheet, Royal and Wexford agree to negotiate definitive agreements to finalize these contemplated transactions no later than Jan. 15, 2016.
Joe Funk, President and Chief Executive Officer of Rhino’s general partner, said: “We look forward to the opportunity to work with Royal once the contemplated transactions are complete. Royal brings additional resources which, when combined with the Rhino platform, provide us with the capability to strategically grow the Partnership as we move forward. Royal’s insight and market strategies will provide us with opportunities to grow our cash flow in the future so that we can deliver optimal value to our unitholders. We appreciate Wexford’s contributions to Rhino as they have been a long-term supportive sponsor since they formed our original operating company in 2003.”
Rhino Resource Partners LP is a diversified energy limited partnership that is focused on coal and energy-related assets and activities, including energy infrastructure investments. Rhino produces metallurgical and steam coal in a variety of basins throughout the United States and it leases coal in eastern Kentucky through its Elk Horn Coal subsidiary.