The initial proceeds will be used to refinance Rhino’s revolving credit facility with PNC Bank, fully collateralize its existing letters of credit and fund general working capital purposes. Rhino plans to utilize the delayed draw portion of the financing agreement for potential strategic acquisitions and accretive organic growth opportunities.
“Our new three year financing agreement provides us the financial stability and flexibility to grow the partnership as we look to capitalize on the current strong market conditions, with a strategic focus on our expansion in the international met coal markets,” said Rick Boone, president and CEO of Rhino’s general partner. “We look forward to working with Colbeck, our new financing partner, to increase the value of our partnership for our unitholders.”
Rhino Resource Partners is a diversified energy limited partnership focused on coal and energy related assets and activities, including energy infrastructure investments.