PBT Signs $2.2B Definitive Merger with Blackbeard, Transforming into Land & Minerals Company
PBT has more than doubled off its 52-week low of $12.95.
Summary
SoftVest and Blackbeard signed a definitive agreement to combine PBT with US Land Guild in a $2.24 billion deal. Existing PBT unitholders will own 59% of New PBT and receive Class A shares on a 1:1 basis, while Blackbeard will own 41%. The transaction converts PBT's cost-bearing NPI into a cost-free 15% royalty interest and adds 80,000 net royalty acres and 68,000 surface acres, creating a scaled minerals and land company. New PBT will have a $500 million credit facility and low leverage, with Jordan Barrett as CEO and a board chaired by SoftVest's Eric Oliver. The deal is expected to enhance free cash flow and enable distributions and buybacks, with the July distribution at $0.043566 per unit reflecting improving performance.
At the time of this announcement, PBT was trading at $28.10 on NYSE in the Energy & Transportation sector, with a market capitalization of approximately $1.3B. The 52-week trading range was $12.95 to $32.25. This news item was assessed with positive market sentiment and an importance score of 9 out of 10. Source: BusinessWire.