SunCoke Energy to seek permanent financing for acquisition of terminal

By Lisa Kerner

Charlotte, N.C., July 21 – SunCoke Energy Partners, LP will use a combination of cash and revolver borrowings totaling about $215 million to help fund its $412 million acquisition of Convent Marine Terminal from Raven Energy Holdings, LLC, an affiliate of the Cline Group.

Chairman and chief executive Fritz Henderson and chief financial officer Fay West discussed the transaction during SunCoke’s earnings call on Tuesday.

The remaining consideration is expected to consist of $82.4 million of SunCoke common limited partnership units issued to the Cline Group and $115 million of seller financing. The seller financing is for six years.

SunCoke plans to term out the cash and revolver portion of the funding. Henderson said the company will term out the financing at “the appropriate time” and did not supply a timeline for obtaining the permanent financing.

The acquisition is expected to close by Sept. 1 and represents an expansion of SunCoke’s coal logistics business and marks its entry into export coal handling.

Convent Marine Terminal is an export terminal located in Convent, La.

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

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