SunCoke Energy buys back $17.1 million 7 3/8% notes for $13.8 million

By Susanna Moon

Chicago, July 29 – SunCoke Energy, Inc. continued deleveraging its balance sheet in the past quarter by repurchasing $17.1 million of its 7 3/8% senior notes due 2020 for $13.8 million, according to a 10-Q filing for the quarter ended June 30 with the Securities and Exchange Commission.

For the six months ended June 30, the company bought back $69.9 million par amount of outstanding the notes for $46.4 million.

The repurchases resulted in a gain on extinguishment of debt of $3.5 million for the quarter and $23.9 million for the half ended June 30, respectively, which included a write-off of $200,000 and $400,000, respectively, of unamortized original issue premium, net of unamortized debt issuance costs.

During the second quarter, the company also repaid $40.4 million of its $60.4 million revolving credit facility due 2019 and, as a result of the divestiture of coal mining business, the company also canceled about $4 million of letters of credit.

As of June 30, the revolver had letters of credit outstanding of $30.1 million and an outstanding balance of $20 million, with $99.9 million left under the terms of the credit agreement.

SunCoke is a Lisle, Ill.-based manufacturer of coke used in the blast furnace production of steel.

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