CNX Coal Resources LP, an MLP recently formed by CONSOL Energy to operate its Pennsylvania coal mines, lowered the proposed deal size for its upcoming IPO on Friday.
The Canonsburg, PA-based company now plans to raise $120 million by offering 8.0 million units at a price of $15. The company had previously filed to offer 10 million units at a range of $19 to $21. At $15, CNX Coal Resources LP will command a market cap of $355 million. Greenlight Capital plans to invest between $30 million and $75 million in a concurrent private placement.
The coal company formed by CONSOL (NYSE: CNX) plans to offer a quarterly distribution of $0.5125, or an annualized yield of 13.7%.
CNX Coal Resources LP, which was formed in 2015 and booked $328 million in sales for the 12 months ended March 31, 2015, plans to list on the NYSE under the symbol CNXC. BofA Merrill Lynch, Wells Fargo Securities, Citi, Jefferies, Scotiabank/Howard Weil, Credit Suisse, J.P. Morgan, Evercore Partners, BB&T Capital Markets, Goldman Sachs, Huntington Investment, Stifel and Nomura Securities are the joint bookrunners on the deal. The timing of the offering has been set as day-to-day.
