SunCoke to sell $200 million tap of 7 3/8% notes due 2020 on Tuesday

By Paul A Harris

Portland, Ore., Jan. 13 – SunCoke Energy Partners, LP and SunCoke Energy Partners Finance Corp. plan to price a $200 million add-on to their 7 3/8% senior notes due Feb. 1, 2020 (existing ratings B1/BB-) on Tuesday following a mid-morning conference call with investors, according to a market source.

Initial guidance is 101 to 102, according to a high-yield investor.

Barclays is the lead left bookrunner for the Rule 144A and Regulation S for life add-on. Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Goldman Sachs & Co., J.P. Morgan Securities LLC and RBS Securities Inc. are the joint bookrunners.

The notes become callable after Feb. 1, 2016 at 105.531.

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.

The original $150 million issue priced at par in January 2013.

A previous $250 million add-on priced at 105.25 to yield 6.077% on April 29, 2014.

For trading purposes, the new notes will carry a separate Cusip number; the Rule 144A notes will carry the separate Cusip for one year, and the Regulation S notes will carry a separate Cusip for 40 days. Upon expiration of transfer restrictions, the notes will be combined under the existing notes’ Cusip numbers and will become fully fungible for trading purposes.

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