Kimbell Royalty Partners’ $57 Million Common Stock Offering

Kimbell Royalty Partners, LP (NYSE:KRP) (“Kimbell”) closed its public offering of 3,000,000 common units representing limited partner interests at a public offering price of $19.00 per common unit today.

The total gross proceeds of the offering, before underwriters’ discounts and estimated offering expenses, was approximately $57 million. Kimbell has granted the underwriters a 30-day option to purchase up to 450,000 additional common units.

Kimbell intends to use the net proceeds from the offering, including any net proceeds from the exercise of the underwriters’ option to purchase additional common units, to repay a portion of the outstanding borrowings under its revolving credit facility.

This offering comes on the heels of Kimbell’s earlier announcement that its federal income tax status change from that of a pass-through partnership to that of a taxable entity via a “check-the-box” election had become effective on September 24, 2018.

Baker Botts advised with a team including Jason Rocha (Picture, Houston), Josh Davidson (Partner, Houston), Eileen Boyce (Senior Associate, Houston), Jennifer Gasser (Associate, Houston), and Steven Lackey (Associate, Houston).

Involved fees earner: Jason Rocha – Baker Botts; Joshua Davidson – Baker Botts; Eileen Boyce – Baker Botts; Jennifer Gasser – Baker Botts; Steven Lackey – Baker Botts;

Law Firms: Baker Botts;

Clients: Kimbell Royalty Partners LP;

Author: Ambrogio Visconti