By Paul A. Harris
Portland, Ore., Sept. 13 - Natural Resource Partners LP and NRP Finance Corp. priced a restructured $300 million issue of 9 1/8% five-year senior notes (B3/B/) at 99.007 to yield 9 3/8% on Friday, according to a syndicate source.
The yield printed at the tight end of yield talk that was set in the 9½% area.
The maturity of the notes was decreased to five years from eight years.
Call protection was decreased to 2.5 years from three years. Hence on April 1, 2016 the notes become callable at 106.844.
There were also covenant changes.
Citigroup Global Markets Inc. and Wells Fargo Securities LLC were the joint bookrunners.
Proceeds will be used to repay revolver debt and a portion of the $200 million term loan entered into in connection with the OCI Wyoming acquisition.
The Houston-based master limited partnership principally engages in owning and managing mineral reserve properties, primarily coal, aggregate and oil and gas reserves.
| Issuer: | Natural Resource Partners LP, NRP Finance Corp.
|
| Face amount: | $300 million
|
| Proceeds: | $297 million
|
| Maturity: | Oct. 1, 2018 (Maturity decreased to five years from eight years)
|
| Securities: | Senior notes
|
| Bookrunners: | Citigroup Global Markets Inc., Wells Fargo Securities LLC
|
| Co-managers: | BB&T, Huntington Investment, BBVA, Comerica, Mitsubishi UFJ
|
| Coupon: | 9 1/8%
|
| Price: | 99.007
|
| Yield: | 9 3/8%
|
| Spread: | 768 bps
|
| First call: | Make-whole call at Treasuries plus 50 bps until April 1, 2016, then callable at 106.844 (call protection decreased to 2.5 years from three years)
|
| Equity clawback: | 35% at 109.125 until April 1, 2016
|
| Change-of-control put: | 101%
|
| Trade date: | Sept. 13
|
| Settlement date: | Sept. 18
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: B
|
| Distribution: | Rule 144A and Regulation S with registration rights
|
| Price talk: | 9½% area
|
| Marketing: | Roadshow
|
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