Alliance Resource Offers $400M Notes

Alliance Resource Partners, L.P. (ARLP) has announced the intention to offer $400 million in aggregate principal amount of senior unsecured notes due 2029. The company plans to use a portion of the net proceeds from the offering to fund the redemption of its outstanding 7.5% senior notes due 2025 and the remaining for general corporate purposes.

The conditional notice of redemption for all of the outstanding 2025 notes has been delivered, subject to the consummation of the offering of the new notes. The redemption price for the 2025 notes is expected to be 100% of the principal amount outstanding, plus accrued and unpaid interest to the redemption date, which is anticipated to be June 28, 2024.

Notably, the new notes have not been registered under the securities laws, and as such, may be offered only in transactions that are exempt from registration. They are offered to qualified institutional buyers under rule 144a and to persons outside the United States under regulation s of the securities act. Furthermore, the new notes will not be listed on any securities exchange or automated quotation system.

In terms of the company's financial position, it's important to note that ARLP is the largest coal producer in the eastern United States and generates operating and royalty income from mineral interests it owns in strategic coal and oil & gas producing regions in the United States. This is a significant aspect of the company's diversified energy operations.

These developments indicate ARLP's strategic financial and operational decisions as it navigates market conditions and positions itself for the future. Following these announcements, the company's shares moved 2.9%, and are now trading at a price of $23.98. If you want to know more, read the company's complete 8-K report here.

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