Alliance Resource Partners LP announced that a subsidiary has priced its previously announced private placement to eligible purchasers of $400 million aggregate principal amount of senior unsecured notes due 2025.
These notes will be issued by Alliance Resource Operating Partners LP at par with interest of 7.5% per year. The offering is expected to close on April 24.
The company announced its intention to offer the notes earlier this week.
The subsidiary intends to use the net proceeds from the offering to repay a portion of its revolving credit facility and term loan, and to repay outstanding series B senior notes due 2018.
The notes will be offered outside the Securities Act of 1933 and outside the securities laws of any other jurisdiction, meaning they will be offered only to qualified institutional buyers under Rule 144A and to people outside the U.S. under Regulation S of the Securities Act. These notes will not be listed under an automated quotation system.