4 June 2018capital raising announcement● NeutralMajor
On June 3, 2018, Osprey agreed to acquire the Royal Resources minerals and royalty businesses from a group of contributors for $800 million: $400 million in cash and 40 million Opco common units valued at $10.00 each (more units and less cash if redemptions leave too little cash). The deal needs at least $355 million of cash for the sellers, stockholder approval, and closing by December 31, 2018. Royal LP can earn up to 20 million more units if the share price reaches $12.50 and $15.00 on a 30-day average. The combined company would be renamed Falcon Minerals Corporation, with 11 directors (six from Blackstone, two from Osprey Sponsor, three independent). This is the business combination the 2017 IPO money was raised to pursue.