Alliance Resource Partners Okays Simplication Move

Tulsa’s Alliance Resource Partners, L.P. has closed a $100 million repurchase deal reached with its wholly-owned subsidiary Alliance Holdings GP, L.P.

The agreement was a move to simplify operations and allows each unit holder in Alliance Holdings to have the same economic share of Alliance Resource Partners. The company said that as a result of the Simplication Transactions, all of the outstanding Alliance Holdings GOP units were canceled and cased to be publicly traded on the Nasdaq global Select Market.

As part of the transaction Alliance Resource Partners also issued 1,322,388 ARLP communit units in exchange for 1.0001% general partner interest in Alliance Resource Operating Partners, L.P. It also received a .001% managing membership interest in Alliance coal, LLC.

Leadership indicated the transactions were intended to simplify the organizational structure of ARLP and AHGP, increase investor transparency and attract a broader investor base.

At the same time, the board of directors of Alliance Resource approved establishment of a unit repurchase program authorizing ARLP to repurchase up to $100 million of its outstanding limited partner common units. There is no time limit on the repurchase program.