HOUSTON, TEXAS--Black Stone Minerals Company, L.P., one of the largest privately held royalty and fee mineral owners in the country, announced that it closed on an offering of convertible preferred units on July 10, 2009. The offering was oversubscribed, with $157.6 million in total commitments, the largest in Black Stone’s history.

The proceeds will allow Black Stone to participate more fully in investment opportunities secured on behalf of the funds it manages for institutional partners and private investors. To date, Black Stone has approximately $1.2 billion under management through three separate private equity funds and four co-investment vehicles. Its most recent private equity fund, Black Stone Natural Resources III, closed in March 2008 with $400 million in commitments.

"This transaction is transformative for Black Stone as we can now move and close quickly on significant opportunities that may arise in the current challenging conditions without putting pressure on our balance sheet," said Thomas L. Carter, Jr., Black Stone's Chairman and Chief Executive. He added that he was pleased to welcome "a terrific stable of new investors" who had joined with current partners and employees to participate in the offering.

"We are thrilled to have joined with Conti Street Minerals in leading this Offering, and in supporting Black Stone Minerals Company's plans for the future" commented Richard Papert, Executive Vice President of the LeFrak Organization.

Under the terms of the preferred, one-third of an investor’s commitment was due at closing, with Black Stone able to call the balance during a two year investment period. The investor can convert to common units under certain conditions at any time over the next five years. “We structured this deal to provide maximum flexibility to Black Stone in calling the capital and flexibility to our investors in converting to common equity,” said Hallie A. Vanderhider, President and Chief Operating Officer. She added that Black Stone had not engaged a third party to assist in placing the funds.

Black Stone Minerals Company, L.P., headquartered in Houston, owns approximately 17.5 million acres of producing and non-producing fee minerals and royalty with interests in more than 29,000 wells spread across 43 states.