By Paul A. Harris
Portland, Ore., May 19 – SunCoke Energy Partners Finance Corp., a wholly owned subsidiary of SunCoke Energy Partners, LP, priced a downsized $630 million issue of 7½% eight-year senior notes (B2/BB-) at 98.513 to yield 7¾% on Friday, according to a market source.
The issue size was decreased from $675 million offering.
Yield discussions were taking place in the 7½% to 8% context on Friday morning, according to a trader, who recounted that initial price talk was 6¾% to 7%.
BofA Merrill Lynch, ABN Amro, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Goldman Sachs & Co., J.P. Morgan Securities LLC and TD Securities were the joint bookrunners.
The Lisle, Ill.-based master limited partnership plans to use the proceeds, together with borrowings under a new revolving credit facility and cash on hand, to fund the purchase of its 7 3/8% senior notes due 2020, via a concurrent tender offer, as well as to repay debt under its existing revolver, term loan and promissory note.
The issuer manufactures coke used for steel manufacturing and the power industry.
| Issuer: | SunCoke Energy Partners, LP
|
| Amount: | $630 million, decreased from $675 million
|
| Maturity: | June 15, 2025
|
| Securities: | Senior notes
|
| Bookrunners: | BofA Merrill Lynch, ABN Amro, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Goldman Sachs & Co., J.P. Morgan Securities LLC, TD Securities
|
| Coupon: | 7½%
|
| Price: | 98.513
|
| Yield: | 7¾%
|
| Spread: | 560 bps
|
| Call protection: | Three years
|
| Trade date: | May 19
|
| Settlement date: | May 24
|
| Ratings: | Moody's: B2
|
| S&P: BB-
|
| Distribution: | Rule 144A
|
| Marketing: | Roadshow
|
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