Emerge Energy Services (EMES) Enters $20M Series A Preferred Units Sales Agreement

August 8, 2016 7:06 AM EDT

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Emerge Energy Services L.P. (NYSE: EMES) announced that it has entered into an agreement with an institutional investor to sell $20.0 million of a new class of its limited partner interests (the "Series A Preferred Units") in a private placement. The Series A Preferred Units, which will initially be convertible into approximately 1.97 million common units representing limited partner interests of the Partnership at the option of the holder or upon certain events, will be issued together with warrants to purchase approximately 890,000 common units at an exercise price of $10.82 per common unit. The Partnership expects to use the net proceeds from the offering to repay indebtedness or for general partnership purchases. As part of the transaction, the Partnership and the purchaser will, on the closing date of the transaction, enter into a registration rights agreement, which will provide the purchasers with customary registration rights. The private placement is expected to close by August 12, 2016, and is subject to certain closing conditions.

The securities offered in the private placement have not been registered under the Securities Act of 1933, as amended (the "Securities Act"), or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements of the Securities Act and applicable state laws.



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