Kimbell Royalty Partners, LP - Form 8-K Summary
Business Context and Reporting Period
This Current Report on Form 8-K was filed by Kimbell Royalty Partners, LP on June 8, 2021. The filing reports a material event regarding the redemption of Series A Cumulative Convertible Preferred Units.
Key Financial Metrics and Transaction Details
- Redemption Volume: 30,000 Preferred Units (representing 55% of outstanding Preferred Units).
- Redemption Price: $1,202.51 per Preferred Unit.
- Aggregate Redemption Cost: $36.1 million.
- Redemption Date: July 7, 2021.
- Remaining Outstanding: 25,000 Preferred Units (22.7% of total originally issued in 2018).
- Funding Source: Borrowings under the Partnership's revolving credit facility.
Material Changes
The filing announces a significant reduction in the Partnership's preferred equity obligations. Following the redemption, the outstanding Preferred Units will decrease from 55,000 to 25,000. The filing does not provide comparative financial metrics such as revenue, profit, or cash flow for the period.
Outlook, Risks, and Management Commentary
Management states that the redemption is expected to be funded via the revolving credit facility. The filing includes standard forward-looking statement disclaimers, noting that actual results may differ due to market conditions, capital needs, and other risks detailed in the 2020 Form 10-K. The document explicitly states it does not constitute a formal notice of redemption or an offer to purchase securities.
Key Facts for Investor Verification
- Verify the impact of the $36.1 million redemption on the Partnership's liquidity and leverage ratios.
- Confirm the terms and availability of the revolving credit facility used to fund the transaction.
- Review the remaining 25,000 Preferred Units to understand future dividend obligations and conversion rights.
- Check subsequent filings for confirmation of the redemption execution on July 7, 2021.