ENGLEWOOD, Colo., Oct. 28, 2016 (GLOBE NEWSWIRE) -- Westmoreland Resource Partners, LP (NYSE:WMLP), today announced the close of a unit exchange agreement with Westmoreland Coal Company and a quarterly distribution reduction. These actions are primarily designed to preserve Westmoreland Resource Partners’ ability to continue to make cash distributions to public unit holders.
Westmoreland Coal Company, the controlling unit holder of Westmoreland Resource Partners, has exchanged 4,512,500 common units for an equal amount of new Series B units that do not have rights to distributions.
The Board of Directors of Westmoreland Resources GP, LLC, general partner of Westmoreland Resource Partners, declared a cash distribution for all unit holders and warrant holders of $0.1333 per unit for its third quarter ended September 30, 2016. The Board elected to distribute at the minimum quarterly distribution level, a reduction of 33% from its previous distribution. Additionally, the Board declared a distribution of Series A Convertible units to be issued in lieu of a $0.1333 cash distribution to holders of Series A Convertible units. The distribution will be paid on November 14, 2016 to all unit holders and warrant holders of record as of the close of business on November 7, 2016.
This press 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 WMLP’s distributions to non-U.S. investors as being attributable to income that is effectively connected with a United States trade or business. Accordingly, WMLP’s distributions to non-U.S. investors are subject to federal income tax withholding at the highest applicable effective tax rate.
About Westmoreland Resource Partners, LP
Westmoreland Resource Partners, LP is a low-cost producer of high-value thermal coal. It markets its coal primarily to large electric utilities with coal-fired, base-load scrubbed power plants under long-term coal sales contracts. For more information about Westmoreland Resource Partners, LP (NYSE:WMLP), please visit www.westmorelandmlp.com. Unit holders may request a hard copy of the Partnership’s Annual Report on Form 10-K free of charge, which is also routinely posted on and accessible at www.westmorelandmlp.com. The Partnership’s most recent Annual Report was filed March 14, 2016.