Published on 1/13/2015 in the Prospect News High Yield Daily.
New Issue: SunCoke Energy prices $200 million tap of 7 3/8% notes due 2020 at 102
By Paul A Harris
Portland, Ore., Jan. 13 – SunCoke Energy Partners, LP and SunCoke Energy Partners Finance Corp. priced a $200 million add-on to their 7 3/8% senior notes due Feb. 1, 2020 (B1/BB-/) at 102 to yield 6.799% on Tuesday, according to a market source.
The reoffer price came at the rich end of the 101.5 to 102 price talk; initial guidance was 101 to 102.
Barclays was the lead left bookrunner. Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Goldman Sachs & Co., J.P. Morgan Securities LLC and RBS Securities Inc. were the joint bookrunners.
The Lisle, Ill.-based producer of metallurgical coke plans to use the proceeds to fund the assumption and redemption of the SunCoke Energy, Inc. 2019 notes, to pre-fund certain environmental liabilities related to the Gateway facility and for general corporate purposes.
| Issuers: | SunCoke Energy Partners, LP and SunCoke Energy Partners Finance Corp.
|
| Face amount: | $200 million
|
| Proceeds: | $204 million
|
| Maturity: | Feb. 1, 2020
|
| Security description: | Add-on to 7 3/8% senior notes due Feb. 1, 2020
|
| Left bookrunner: | Barclays
|
| Joint bookrunners: | Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Goldman Sachs & Co., J.P. Morgan Securities LLC, RBS Securities Inc.
|
| Coupon: | 7 3/8%
|
| Price: | 102
|
| Yield to worst: | 6.799%
|
| Spread: | 543 bps
|
| First call: | Feb. 1, 2016 at 105.531
|
| Trade date: | Jan. 13
|
| Settlement date: | Jan. 16
|
| Ratings: | Moody's: B1
|
| Standard & Poor's: BB-
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 101.5 to 102
|
| Marketing: | Quick to market
|
| Original issue: | $150 million issue priced at par in January 2013
|
| Previous add-on: | $250 million priced at 105.25 to yield 6.077% on April 29, 2014
|
| Fungibility: | Rule 144A notes will carry the separate Cusip for one year, Regulation S notes will carry a separate Cusip for 40 days
|
| Total issue size: | $600 million
|
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