Business
Royal Energy Resources Acquires Majority Interest and Control of Rhino Resource Partners
Royal Energy Resources Acquires Majority Interest and Control of Rhino Resource Partners.
About this update from Royal Energy Resources Inc
[{"type":"text","content":"\n \n \n Royal Energy Resources Acquires Majority Interest and Control of Rhino Resource Partners\n \n \nRoyal Energy Resources Acquires Majority Interest and Control of Rhino Resource Partners\n \n CHARLESTON, SC--(Marketwired - Mar 18, 2016) - Royal Energy Resources, Inc. (\"Royal\") (OTCQB: ROYE) is pleased to announce that effective March 17, 2016 it has assumed control of Rhino Resource Partners, LP (\"Rhino\") (OTCQB: RHNO), with the acquisition 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 from Wexford Capital LP (\"Wexford\"). \n The Subordinated Units purchased by Royal represent 76.5% of the issued and outstanding Subordinated Units of Rhino, and when combined with the Common Units acquired by Royal from Wexford on January 21, 2016, result in Royal owning 55.4% of the outstanding Units of Rhino. As a result of the transaction, Royal has obtained majority ownership interest and control of Rhino. \n The acquisition was closed in two separate transactions in order for Royal to secure the requisite change of control under Rhino's $90 million senior secured credit agreement with its lenders. Royal was granted the change of control and the parties closed concurrently with the lenders' approval. \n William Tuorto, Royal's Chairman and Chief Executive Officer, commented, \"We believe Rhino represents one of the few remaining value plays; a company with high-quality assets, limited debt, cash flow positive, and a strong book value. Rhino's management team is incredibly proficient, and we look forward to working with them to continue to optimize their assets and operations.\"\n About Rhino Resource Partners, LP\n Rhino Resource Partners, LP is a diversified energy company focused on coal and energy related assets and activities, including energy infrastructure investments. Rhino operated nine mines, including four underground and five surface mines, located in Kentucky, Ohio, West Virginia and Utah. In addition to operating coal properties, Rhino manages and leases coal properties and collect royalties from those management and leasing activities. Rhino's business includes investments in oilfield services for independent oil and natural gas producers and land-based drilling contractor...