Kimbell Royalty Partners, LP Announces Underwriting Agreement for Public Offering

Kimbell Royalty Partners, LP (NYSE: KRP) disclosed today that on January 7, 2025, the company entered into an Underwriting Agreement. The agreement includes Kimbell Royalty GP, LLC, Kimbell Royalty Operating, LLC, and Citigroup Global Markets Inc., J.P. Morgan Securities LLC, and RBC Capital Markets, LLC, as representatives of the underwriters. The Offering involves the sale of 10,000,000 common units at a price of $14.90 per unit, with an option for underwriters to purchase an additional 1,150,000 units if required within 30 days.

The Underwriting Agreement comprises standard representations, warranties, and conditions to closing. Additionally, the Kimbell Parties have committed to indemnify the Underwriters against specific liabilities, including those under the Securities Act.

The offering, registered under the Securities Act of 1933, is anticipated to close on January 9, 2025, subject to customary conditions. The net proceeds to Kimbell Royalty Partners from this Offering are expected to be around $141.3 million. These funds are to be allocated for the repayment of existing borrowings under the Partnership’s revolving credit facility. Moreover, the company intends to utilize future borrowings to fund its acquisition of mineral and royalty interests from Boren Minerals.

Underwriters in the Offering, including affiliates of Citigroup Global Markets Inc., J.P. Morgan Securities LLC, and others, are lenders under the Partnership’s revolving credit facility. Therefore, the Offering adhered to the stipulations of Rule 5121 of the Financial Industry Regulatory Authority, Inc. It is noteworthy that the underwriters did not transact sales to accounts under their discretionary control without explicit written approval from the account holders.

Lastly, Kimbell Royalty Partners highlighted that certain Underwriters and their affiliates are full-service financial institutions engaged in various financial activities. These activities encompass securities trading, financial advisory, investment management, and other services. The details provided here are excerpts from the Underwriting Agreement, and to access the complete agreement, refer to Exhibit 1.1 attached to the Current Report on Form 8-K.

This article is based on the 8-K SEC Filing submitted by Kimbell Royalty Partners, LP on January 7, 2025.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Kimbell Royalty Partners’s 8K filing here.