By a News Reporter-Staff News Editor at Energy Weekly News -- SunCoke Energy Partners, L.P. (NYSE: SXCP) reported the results of its previously announced cash tender offer (the "Offer") to purchase up to $160 million in aggregate principal amount (the "Maximum Tender Amount") of SunCoke Energy, Inc.'s (NYSE: SXC) outstanding $400 million of 7.625% Senior Notes due 2019 (the "SXC Notes"). SXCP commenced the Offer on April 25, 2014 in conjunction with its previously announced contribution agreement with SXC to acquire an additional 33% equity interest in SXCP's Haverhill and Middletown cokemaking facilities (the "Contribution").
According to information provided to SXCP by the depositary for the Offer, approximately $250.1 million in aggregate principal amount of the SXC Notes had been tendered as of 5:00 p.m., Eastern time, on May 8, 2014 (the "Early Tender Date"). Because the total principal amount of all SXC Notes tendered as of the Early Tender Date is more than the Maximum Tender Amount, SXCP expects to accept, on a prorated basis, an amount of such SXC Notes equal to the Maximum Tender Amount.
Holders of accepted SXC Notes will receive on the early settlement date the Total Consideration of $1,071.25 for each $1,000 principal amount of SXC Notes accepted for purchase, which includes an early tender premium of $30.00, plus accrued and unpaid interest from the most recent interest payment date for the SXC Notes up to, but not including, the early settlement date.
The early settlement date is expected to be May 9, 2014, provided that the following conditions to the Offer have been satisfied or waived: (1) closing the Contribution on terms satisfactory to SXCP; (2) completion of the capital markets debt financing announced on April 28, 2014, with net proceeds to SXCP sufficient to pay the Total Consideration for all tendered SXC Notes plus all related fees and expenses; and (3) certain other customary conditions.
The withdrawal period for tender of SXC Notes has expired, and SXC Notes tendered in the Offer may no longer be withdrawn.
The Offer is scheduled to expire at 11:59 p.m., Eastern time, on May 22, 2014. However, because the aggregate principal amount of SXC Notes validly tendered as of the Early Tender Date exceeds the Maximum Tender Amount, and SXCP has elected not to increase the Maximum Tender Amount, any SXC Notes tendered after the Early Tender Date will not be eligible for purchase in the Offer.
The complete terms and conditions of the Offer are described in the Offer to Purchase dated April 25, 2014, copies of which may be obtained from Global Bondholder Services Corporation, the depositary and information agent for the Offer, by calling, in the case of banks and brokers, (212) 430-3774 and, for all others, (866) 470-4300 (US toll-free).
SXCP has also retained Citigroup Global Markets Inc. and Barclays Capital Inc. as dealer managers for the Offer. Questions regarding the terms of the Offer may be directed to Citigroup at (212) 723-6106 (collect) and (800) 558-3745 (US toll-free) or to Barclays at (212) 528-7581 (collect) and (800) 438-3242 (US toll-free).
None of SXCP, the dealer managers, the depositary, the information agent, the trustee for the SXC Notes or their respective affiliates is making any recommendation as to whether or not holders should tender all or any portion of their SXC Notes in the Offer.
Keywords for this news article include: L.P., Banking and Finance, SunCoke Energy Partners L.P.
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