* NRP increases credit facility from $175 million to $300 million
* NRP acquires West Virginia metallurgical coal reserves for $20 million
HOUSTON, Dec. 18 /PRNewswire-FirstCall/ -- Natural Resource Partners L.P.
(NYSE: NRP) and (NYSE: NSP), announced today that it has exercised the
accordion feature of its credit agreement and increased the facility to $300
million from $175 million. The credit agreement's current pricing grid and
covenants apply to the increased credit facility.
"We are pleased that all of our banks in the facility have increased their
commitments in line with their previous commitments. This increase to $300
million will allow NRP to continue our growth plans at very attractive
pricing," said Dwight Dunlap, Chief Financial Officer.
NRP is also announcing the purchase of approximately 20 million tons of
low vol metallurgical coal reserves from National Resources, Inc., a
subsidiary of Bluestone Industries, Inc. for $20 million. The reserves, which
are located above NRP's Pinnacle reserves, are currently being mined and NRP
anticipates approximately $3.1 million of annual coal royalty revenues from
the acquisition of these reserves. The acquisition is immediately accretive
to NRP unitholders. The increased credit facility was used to fund the
transaction.
Natural Resource Partners L.P. is headquartered in Houston, TX, with its
operation's headquarters in Huntington, WV. NRP is a master limited
partnership that is principally engaged in the business of owning and managing
coal properties in the three major coal producing regions of the United
States: Appalachia, the Illinois Basin and the Powder River Basin. The common
units are traded on the New York Stock Exchange (NYSE) under the symbol NRP
and the subordinated units are traded on the NYSE under the symbol NSP.
For additional information, please contact Kathy Hager at 713-751-7555 or
khager@nrplp.com . Further information about NRP is available on the
partnership's website at http://www.nrplp.com .
This press release includes "forward-looking statements" as defined by the
Securities and Exchange Commission. Such statements include the estimated
reserves, revenues, as well as the accretive nature of the transaction. All
statements, other than statements of historical facts, included in this press
release that address activities, events or developments that the partnership
expects, believes or anticipates will or may occur in the future are forward-
looking statements. These statements are based on certain assumptions made by
the partnership based on its experience and perception of historical trends,
current conditions, expected future developments and other factors it believes
are appropriate in the circumstances. Such statements are subject to a number
of assumptions, risks and uncertainties, many of which are beyond the control
of the partnership. These risks include, but are not limited to, decreases in
demand for coal; changes in operating conditions and costs; production cuts by
our lessees; commodity prices; unanticipated geologic problems; changes in the
legislative or regulatory environment and other factors detailed in Natural
Resource Partners' Securities and Exchange Commission filings. Natural
Resource Partners L.P. has no obligation to publicly update or revise any
forward-looking statement, whether as a result of new information, future
events or otherwise.
SOURCE Natural Resource Partners L.P.
CONTACT:
Kathy Hager of Natural Resource Partners L.P.,
+1-713-751-7555,
or
khager@nrplp.com