TULSA, Okla. - Alliance Resource (NASDAQ:ARLP) Partners, L.P. (NASDAQ: ARLP), a diversified energy company and the largest coal producer in the eastern United States, announced the pricing of a $400 million private placement of senior unsecured notes. The 8.625% notes, due in 2029, will be issued at par and are expected to close on June 12, 2024, subject to customary closing conditions.
The company stated that the proceeds would be used partly to redeem its 7.5% Senior Notes due in 2025, with the remainder allocated for general corporate purposes. The redemption of the 2025 Notes is contingent upon the successful completion of the new offering, with a redemption date anticipated to be June 28, 2024. The redemption price will be the full principal amount plus accrued and unpaid interest.
The newly priced notes will not be registered under the Securities Act of 1933 or any state securities laws, and therefore, will be available only to qualified institutional buyers and certain non-U.S. persons in offshore transactions. The notes will not be listed on any securities exchange.
This announcement does not constitute an offer to sell or a solicitation of an offer to buy the new notes. The sale of the notes has not been approved or disapproved by any regulatory authority, nor has any such authority passed upon the accuracy or adequacy of the private placement.
Alliance Resource Partners, L.P. emphasizes its evolution and positioning as a reliable energy partner, looking to support the advancement of energy and related infrastructure as part of its business strategy.
InvestingPro Insights
Alliance Resource Partners, L.P. (NASDAQ: ARLP), while announcing its recent financial maneuver, continues to exhibit strong fundamentals as suggested by real-time data from InvestingPro. The company's market capitalization stands at a robust $3 billion, and it operates with a moderate level of debt. An attractive P/E ratio of 5.14, as of the last twelve months leading up to Q1 2024, indicates that the stock may be undervalued relative to its earnings. Additionally, ARLP boasts a substantial dividend yield of 11.68%, rewarding shareholders and demonstrating a commitment to returning value, as the company has maintained dividend payments for 26 consecutive years.
InvestingPro Tips highlight that ARLP operates with low price volatility, providing a more stable investment in the often turbulent energy sector. Moreover, the company's liquid assets exceed its short-term obligations, ensuring financial resilience. While some analysts have revised their earnings downwards for the upcoming period, ARLP's stock is trading near its 52-week high, reflecting a strong return over the last three months of 30.05%. This performance is aligned with a solid track record over the last five years.
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