News Column

Foresight Energy prices IPO at $20

June 18, 2014

By Jacob Barker, St. Louis Post-Dispatch

June 18--Foresight Energy LP on Tuesday priced the 17.5 million common units it plans to offer the public at $20 per share.

Foresight's units will begin trading on the New York Stock Exchange Wednesday under the symbol "FELP." The initial public offering is expected to close June 23.

Foresight previously estimated unit pricing of $19 to $21.

St. Louis-based Foresight Energy owns 3 billion tons of Illinois coal reserves and four mines, three of them highly-efficient "longwall" operations. At the end of March, it had about $1.5 billion in debt on its books.

The initial public offering represents a 13.5 percent stake in Foresight's limited partner. The company would still be controlled by founder Chris Cline's Foresight Reserves.

Foresight is offering underwriters an option for 2.625 million additional shares, which, if exercised, would increase the stake in the limited partner to 15.5 percent.

Foresight has indicated it plans to use $210 million of the money raised through the offering to repay debt, while the remainder would pay Foresight Reserves and a member of the company's management team.

Foresight has said it plans to pay holders of its common units at least $1.35 a year per unit, if it has enough cash.

Jacob Barker is a business reporter at the Post-Dispatch. Follow him on Twitter @jacobbarker and the Business section @postdispatchbiz.


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Source: St. Louis Post-Dispatch (MO)

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