Kimbell Royalty slides on equity raise to fund acquisition; Apollo to invest

Kimbell Royalty Partners, LP

03/08/2023 12:59

** Kimbell Royalty Partners  KRP.N  down 7.9% at $14.27
before the bell as co raises equity
    ** Co late Weds sold 7.25 mln units at $14 for $101.5 mln
raise to pay down credit facility
    ** Offering size increased from 6 mln units, prices at 9.7%
discount to last sale
    ** Kimbell late Weds announced $445 mln accretive
acquisition of oil and gas royalty interests from a private
seller
    ** In addition, co to sell up to $400 mln 6% convertible
preferred units to Apollo Global Management  APO.N  in private
placement to fund acquisition
    ** Kimbell has ~86.36 mln units outstanding, per Refinitiv
data
    ** KRP has fallen 7.2% YTD through Weds close
    ** Citigroup, BofA, Truist, Mizuho and RBC acting as jt
bookrunners for equity offering

 (Lance Tupper is a Reuters market analyst. The views expressed
are his own)
 ((lance.tupper@thomsonreuters.com
lance.tupper@tr.com 1-646-279-6380))