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Rhino Resource Partners LP Announces Agreements with Royal Energy Resources, Inc. and Yorktown Partners LLC
Rhino Resource Partners LP Announces Agreements with Royal Energy Resources, Inc. and Yorktown Partners LLC.
About this update from Royal Energy Resources Inc
[{"type":"text","content":"\n \n \n Rhino Resource Partners LP Announces Agreements with Royal Energy Resources, Inc. and Yorktown Partners LLC\n \n \nRhino Resource Partners LP Announces Agreements with Royal Energy Resources, Inc. and Yorktown Partners LLC\n \n LEXINGTON, KY--(Marketwired - Dec 30, 2016) - Rhino Resource Partners LP (OTCQB: RHNO) (\"Rhino\" or the \"Partnership\") announced today that it has entered into an option agreement (the \"Option Agreement\") with Royal Energy Resources, Inc. (OTCQB: ROYE) (\"Royal\"), Rhino Resource Partners Holdings, LLC (\"Rhino Holdings\"), an entity wholly-owned by certain investment partnerships managed by Yorktown Partners LLC (\"Yorktown\"), and Rhino GP LLC, the general partner of Rhino, whereby Rhino has received an option (the \"Call Option\") from Rhino Holdings to acquire substantially all of the outstanding common stock of Armstrong Energy, Inc. (\"Armstrong Energy\") that is currently owned by investment partnerships managed by Yorktown. The Option Agreement stipulates that Rhino can exercise the Call Option no earlier than January 1, 2018 and no later than December 31, 2019. In exchange for Rhino Holdings granting Rhino the Call Option to purchase Armstrong, the Partnership issued 5.0 million new common units (the \"Call Option Premium Units\") to Rhino Holdings upon the execution of the Option Agreement.\n The Option Agreement stipulates Rhino can exercise the Call Option and purchase the common stock of Armstrong Energy, a coal producing company with mines located in the Illinois Basin in western Kentucky, in exchange for a number of newly issued Rhino common units to be issued to Rhino Holdings, which when added with the Call Option Premium Units discussed above, will result in Rhino Holdings owning 51% of the fully diluted common units of Rhino. The purchase of the Armstrong Energy common stock through the exercise of the Call Option would also require Royal to issue 51% ownership interest of Rhino GP, currently owned and controlled by Royal, to Rhino Holdings. The exercise of the Call Option in the Option Agreement is dependent upon a successful negotiation with the current bondholders of Armstrong Energy to restructure their bonds as well as the refinancing of the Partnership's current revolving credit facility. \n The Option Agreement also contains an option (the \...