SoftVest, Blackbeard announce proposed combination with Permian Basin Royalty

SoftVest, L.P., a significant unitholder of the Permian Basin Royalty Trust (PBT), and Blackbeard Holdings announced that they have entered into a preliminary non-binding term sheet contemplating a business combination of PBT and certain Blackbeard assets. The Transaction would result in the formation of a new Texas-incorporated, NYSE-listed company. Under the terms of the proposed Transaction, New PubCo would acquire and own (i) all of the assets and operations of PBT and (ii) US Land Guild, LLC, a wholly owned subsidiary of Blackbeard that will own approximately 66,500 acres of surface estate and a 15% royalty interest associated with certain acreage and mineral interests currently owned by Blackbeard or one of its affiliates. Immediately following the Transaction, former PBT unitholders would own approximately 58% of New PubCo and Blackbeard and its affiliates would own approximately 42%, reflecting the significant value attributed to PBT’s existing asset base and unitholder base in the combined entity. The Transaction is expected to be presented to PBT unitholders for approval at a unitholder meeting to be called in due course. Following the recent court-approved amendment to the Trust’s indenture, the Transaction may be approved by a simple majority of unitholders constituting a quorum at such meeting.