Published on 1/17/2013 in the Prospect News High Yield Daily.
New Issue: SunCoke Energy prices $150 million 7 3/8% seven-year notes at par
By Paul A. Harris
Portland, Ore., Jan. 17 - SunCoke Energy Partners, LP and SunCoke Energy Partners Finance Corp. priced a $150 million issue of seven-year senior notes (B1/BB/) at par to yield 7 3/8% on Thursday, according to a market source.
The yield printed at the tight end of price talk that was set in the 7½% area.
J.P. Morgan Securities LLC, Barclays and RBC Capital Markets were the joint bookrunners.
The issuing entities are SunCoke Energy Partners, LP (the partnership), a Delaware limited partnership that is a wholly owned subsidiary of SunCoke Energy, and SunCoke Energy Partners Finance Corp., a wholly owned subsidiary of the partnership.
In conjunction with the notes offering, the company has undertaken an initial public offering of 13.5 million of its common units.
The Lisle, Ill.-based producer of metallurgical coke plans to use the proceeds from the notes and units to repay a portion of its term loan, to fund a distribution to SunCoke Energy, Inc. and to fund cash on the balance sheet at the master limited partnership level in order that it may prefund obligations.
| Issuers: | SunCoke Energy Partners, LP and SunCoke Energy Partners Finance Corp.
|
| Amount: | $150 million
|
| Maturity: | Feb. 1, 2020
|
| Securities: | Senior notes
|
| Bookrunners: | J.P. Morgan Securities LLC, Barclays, RBC Capital Markets LLC
|
| Co-managers: | BB&T Capital Markets, Bank of America Merrill Lynch, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, RBS Securities Inc.
|
| Coupon: | 7 3/8%
|
| Price: | Par
|
| Yield: | 7 3/8%
|
| Spread: | 609 bps
|
| Call features: | Make-whole call at Treasuries plus 50 bps until Feb. 1, 2016, then callable at 105.531, 103.688, 101.844, par on and after Feb. 1, 2019
|
| Equity clawback: | 35% at 107.375 until Feb. 1, 2016
|
| Change-of-control put: | 101%
|
| Trade date: | Jan. 17
|
| Settlement date: | Jan. 24
|
| Ratings: | Moody's: B1
|
| Standard & Poor's: BB
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 7½% area
|
| Marketing: | Roadshow
|
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