SunCoke Energy Partners files for IPO

SunCoke Energy Partners plans to sell at least 13.5M units in IPO that could raise up to $326M

Associated Press

LISLE, Ill. (AP) -- SunCoke Energy Partners LP on Tuesday said its initial public offering could raise up to $326 million.

The partnership, which is a subsidiary of coal producer SunCoke Energy Inc., said in a regulatory filing it plans to sell 13.5 million common units representing limited partner interests for $19 to $21 per share. Based on the midpoint of that range, the offering would raise gross proceeds of $270 million.

In addition, the partnership will grant the offering's underwriters — including Barclays Capital Inc., Merrill Lynch, Pierce, Fenner & Smith Inc., Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC and J.P. Morgan Securities LLC — a 30-day option to buy up to an additional 2 million common units at the IPO price, less underwriting discounts.

SunCoke Energy Partners said it plans to list the units on the New York Stock Exchange under the symbol "SXCP."

The partnership will own a majority stake in SunCoke Energy Inc.'s interests in cokemaking plants in Franklin Furnace and Middletown, Ohio. SunCoke Energy Inc. originally announced plans for the IPO in July, but last month decided to delay it until market conditions improved.

The units being offered represent a 43 percent limited partner interest in the partnership, or a 49.4 percent interest if the underwriters' option is exercised in full. SunCoke Energy Inc. will hold a 2 percent general partner interest and the remaining limited partner interest in the company.

The partnership said that about $36 million of the proceeds will be returned to SunCoke Energy Inc. to reimburse it for costs related to the expansion and improvement of the Haverhill and Middletown plants. Proceeds also will be used to pay down debt and for working capital.

Shares of SunCoke Energy Inc. fell 14 cents to $14.64 in midday trading.

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