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Natural Resource Partners Announces Redemption of Paid-in-Kind Preferred Units and Declares Fourth Quarter 2021 Distributions

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Natural Resource Partners L.P. (NYSE: NRP) has redeemed all 19,321 of its paid-in-kind 12.0% Class A Convertible Preferred Units for $19.6 million in cash, eliminating their outstanding units. The Board of Directors also declared a fourth quarter 2021 distribution of $0.45 per common unit, payable on February 28, 2022, to unitholders of record on February 22, 2022. Additionally, a cash distribution of $7.5 million was declared on the Class A Convertible Preferred Units.

Positive
  • Redemption of $19.6 million in preferred units enhances financial stability.
  • Ongoing cash distributions indicate strong cash flow and commitment to unitholders.
Negative
  • None.

HOUSTON--(BUSINESS WIRE)-- Natural Resource Partners L.P. (NYSE: NRP) today announced that it has redeemed at par all 19,321 of its paid-in-kind 12.0% Class A Convertible Preferred Units for $19.6 million in cash in accordance with their terms and including accrued interest. Following the redemption, no paid-in-kind preferred units remain outstanding and $250 million of 12.0% Class A Convertible Preferred Units remains outstanding.

Additionally, the Board of Directors of its general partner declared a fourth quarter 2021 distribution of $0.45 per common unit for NRP. The distribution will be paid on February 28, 2022 to common unitholders of record on February 22, 2022.

The Board also declared a fourth quarter cash distribution on NRP’s 12.0% Class A Convertible Preferred Units totaling $7.5 million.

Company Profile

Natural Resource Partners L.P., a master limited partnership headquartered in Houston, TX, is a diversified natural resource company that owns, manages and leases a diversified portfolio of properties in the United States including coal, industrial minerals and other natural resources, as well as rights to conduct carbon sequestration and renewable energy activities. NRP also owns an equity investment in Ciner Wyoming LLC, one of the world’s lowest-cost producers of soda ash.

Withholding Information for Foreign Investors

This release is intended to be a qualified notice under Treasury Regulation Section 1.1446-4(b). Brokers and nominees should treat one hundred percent (100.0%) of NRP's distributions to foreign investors as being attributable to income that is effectively connected with a United States trade or business. Accordingly, NRP's distributions to foreign investors are subject to federal income tax withholding at the highest applicable rate.

For additional information please contact Tiffany Sammis at 713-751-7515 or tsammis@nrplp.com. Further information about NRP is available on the partnership’s website at http://www.nrplp.com.

Tiffany Sammis

713-751-7515

tsammis@nrplp.com

Source: Natural Resource Partners L.P.

FAQ

What is the significance of NRP redeeming its preferred units?

The redemption of $19.6 million in preferred units strengthens NRP's balance sheet by reducing outstanding liabilities.

When will NRP's 2021 fourth quarter distribution be paid?

NRP's fourth quarter distribution of $0.45 per common unit will be paid on February 28, 2022.

What was the declared cash distribution on NRP's preferred units?

The declared cash distribution on NRP’s preferred units totals $7.5 million.

How many Class A Convertible Preferred Units were redeemed by NRP?

NRP redeemed all 19,321 of its paid-in-kind Class A Convertible Preferred Units.

What is NRP's current distribution strategy?

NRP has declared consistent cash distributions, reflecting a stable cash flow position.

Natural Resource Partners L.P.

NYSE:NRP

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Bituminous Coal & Lignite Surface Mining
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