Permianville Royalty Trust Unitholders Approve Proposal For Sponsor To Sell Properties In The Permian Basin

Author: Happy Mohamed | July 24, 2023 04:27pm

Permianville Royalty Trust (NYSE:PVL, the ", Trust", ))))) today announced that at the special meeting of Trust unitholders held on July 19, 2023, unitholders approved a transaction pursuant to which (a) COERT Holdings I, LLC (the "Sponsor"), the sponsor of the Trust, will sell certain oil and natural gas properties in the Permian Basin (the "Divestiture Properties") that constitute a portion of the properties burdened by the Trust's 80% net profits interest, (b) the Trust will release the related net profits interest associated with the Divestiture Properties and (c) the net proceeds received by the Trust with respect to such sale will be distributed to the unitholders.

The vote in favor of the sale of the Divestiture Properties constituted more than the required 50% of the Trust units outstanding as of the record date for the special meeting and, as a result, the proposal was approved by the Trust unitholders.

The two proposals presented at the special meeting to amend the Amended and Restated Trust Agreement and the Conveyance of Net Profits Interest to raise certain threshold requirements for similar, future transactions received votes representing fewer than the required 75% of the Trust units outstanding as of the record date for the special meeting and, as a result, those proposals were not approved by the unitholders.

Closing of the sale of the Divestiture Properties is expected to occur before August 31, 2023. Following the closing, the Sponsor will set a record date for the special distribution and within 45 days after the closing of the transaction, the Sponsor will distribute 80% of the net proceeds of the sale, less 80% of the expenses associated with the transaction and proxy meeting expenses and associated holdback amount, to unitholders of record.

Posted In: PVL