Rhino Resource Partners LP, which is a leading coal producer is coming out with its IPO or Initial Public offering. It is expecting to raise about $92 million.
What is the size of Rhino Resource IPO?
The Rhino Resource IPO will be offering around 5 million shares for sale through its initial public offering.
What is the expected price of Rhino Resource share?
From the valuations, it seems that the price of each share of Rhino Resource IPO will be around $20.
Where will the IPO proceeds be used by Rhino Resource?
Rhino Resource is expecting the capital raised to be used for various purposes. A portion of the proceeds will go towards repaying about $67 million in debt. The remaining proceeds will be distributed to its predecessor Rhino Energy LLC in connection with the offering.
What is the business and valuations of Rhino Resource?
Rhino has coal reserves located in Appalachia, the Illinois Basin and Colorado. For the year ended Dec. 31, the company produced about 7.1 million tons of coal and sold roughly 8.2 million tons of coal. Rhino sells its coal primarily to electric utilities and steel producers. In 2007, Rhino reported income of $30.7 million on revenue of $403.5 million.
What will be the shareholding pattern after the IPO?
Around 13.5% of the shares – making the 5 million shares – will be offered through the IPO for sale. Wexford Funds will own an 84.6 percent limited partner interest, and the Wexford principals will own and control the company's general partner.
Who are the lead underwriters to the issue?
Lehman Brothers is the lead underwriter to the issue. The good thing for the investors is that Rhino has granted the underwriters the option to buy up to an additional 750,000 units to cover any overallotments.
| The company plans to list its units on the Nasdaq Global Select Market under the symbol "RRLP." | Table of Contents |
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