TULSA, Okla. - Alliance Resource (NASDAQ:ARLP) Partners, L.P. (NASDAQ: ARLP), a diversified energy company, announced its intention to issue $400 million in senior unsecured notes due in 2029. The offering is aimed at qualified institutional buyers and certain international persons in transactions exempt from registration under U.S. securities laws.
The company, known as the largest coal producer in the eastern United States, stated that the proceeds from the new notes would be used primarily to fund the redemption of its outstanding 7.5% Senior Notes due in 2025. The redemption is conditioned upon the successful issuance of the new notes, with a redemption date expected to be June 28, 2024. The redemption price will be the full principal amount plus accrued interest.
These new notes will not be registered under the Securities Act of 1933 or any state securities laws, and as such, will not be offered on any securities exchange. They are available only to certain investors under specific exemptions.
Alliance Resource Partners, L.P. also generates income from mineral interests in strategic coal and oil & gas-producing regions and is positioning itself for future energy infrastructure advancements.
The information in this article is based on a press release.
InvestingPro Insights
As Alliance Resource Partners, L.P. (NASDAQ: ARLP) takes a strategic step towards strengthening its financial position through the issuance of senior unsecured notes, investors may find the following data and tips from InvestingPro insightful for evaluating the company's current market standing and future prospects.
InvestingPro data indicates that ARLP has a market capitalization of $3.07 billion, reflecting its stature in the industry. With a P/E ratio of 5.23 and an adjusted P/E ratio for the last twelve months as of Q1 2024 at 5.29, the company shows a value proposition in comparison to earnings. Additionally, the dividend yield as of mid-May 2024 stands at a substantial 11.68%, which is particularly attractive for income-focused investors.
Among the key InvestingPro Tips, it's noteworthy that ARLP has maintained dividend payments for 26 consecutive years, showcasing a consistent return to shareholders. Furthermore, the company's stock is trading near its 52-week high, which may indicate a strong market confidence in its performance. However, analysts have revised their earnings expectations downwards for the upcoming period, which could suggest potential future challenges or a conservative outlook. Additionally, the Relative Strength Index (RSI) suggests that the stock is currently in overbought territory, which might imply a heightened level of investor enthusiasm that could lead to volatility.
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