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SunCoke adds $45 million incremental term loan for note repayment
By Wendy Van Sickle
Columbus, Ohio, Jan. 17 – SunCoke Energy, Inc. added a $45 million incremental term loan under its existing amended and restated credit agreement dated May 24, 2017, according to an 8-K filing with the Securities and Exchange Commission.
The incremental loan was incurred on Jan. 10. Proceeds were to be used to finance a portion of the repayment of the company’s 7 5/8% senior notes due 2019.
The credit agreement also provides for a $100 million revolving credit facility with a $50 million sublimit for letters of credit.
Borrowings under the revolver and the incremental term loan bear interest at Libor plus 175 basis points to 225 bps, depending on SunCoke’s consolidated leverage ratio.
The incremental term loan matures on May 24, 2022.
The principal is payable in quarterly installments of 0.625% through December 2019, then stepping up to 1.875% through March 2022, with the remainder due at maturity.
The company may voluntarily prepay the incremental term loan in whole or in part at any time without premium or penalty, except that prepayments of any portion of the incremental term loan made on or before May 8 will incur a fee of 1% of the principal amount prepaid.
The credit agreement requires SunCoke to maintain a maximum ratio of consolidated total funded debt to EBITDA of 3.25 to 1.0 and a minimum ratio of EBITDA to interest expense ratio of 2.75 to 1.0.
Bank of America, NA is the administrative agent.
The notes are expected to be redeemed on Jan. 11 at par plus accrued interest up to but excluding the redemption date for a total payment of about $46,111,444.
Bank of New York Mellon Trust Co. is the trustee and paying agent.
SunCoke is a Lisle, Ill.-based manufacturer of coke used in the blast furnace production of steel.
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