United States : WESTMORELAND COAL to take control of Oxford Resources GP.
Westmoreland Coal Company, Oxford Resource Partners, LP and Oxford Resources GP, LLC, the general partner of Oxford ( Oxford GP ), have disclosed that Westmoreland is to acquire Oxford GP and contribute certain royalty bearing coal reserves to Oxford in return for Oxford common units.
Hence, it is expected that Oxford will be able to resume quarterly distributions at $0.2000 per common unit (post-reverse split, as discussed below) and has secured a commitment to refinance its existing credit facilities on better terms, to include additional credit capacity to fund future acquisitions.
After these transactions, Oxford will continue to be a stand-alone, publicly-traded master limited partnership ( MLP ) and Westmoreland will own 77% of the fully-diluted limited partner interests in Oxford.
Keith E. Alessi, Chief Executive Officer, said, Westmoreland has long felt that our long-term cost-plus and cost-protected contracts make us ideally suited for a MLP structure. We have explored various ways to take advantage of the benefits of a MLP. The Oxford transactions provide us with an expeditious path to enter the MLP space and immediately recognize the advantages of owning a general partner. Additionally, the existing Oxford business has many of the characteristics of Westmoreland s business and we feel that we are well positioned to partner with its customers. We look forward to Oxford s employees joining the Westmoreland family.
Oxford s President and Chief Executive Officer, Charles C. Ungurean, said, Oxford is very excited about this opportunity with Westmoreland. Since early in 2012, we have been pursuing various strategic alternatives in an effort to bring increased value to our unitholders. This transaction represents the culmination of that effort and we believe that this represents a great opportunity for our company, unitholders, employees and customers, as well as providing a MLP vehicle for Westmoreland and its shareholders. This transaction is a win for all stakeholders.
The deal was unanimously approved by the board of directors of Oxford GP, including the equity restructuring of Oxford through the amendment and restatement of Oxford s partnership agreement described below.
Also, the transactions have been unanimously approved by Westmoreland s board of directors.
2014 Al Bawaba (Albawaba.com) Provided by SyndiGate Media Inc. ( Syndigate.info ).
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|Date:||Oct 17, 2014|
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