LISLE, Ill., May 16, 2017 /PRNewswire/ -- SunCoke Energy Partners, L.P. (NYSE: SXCP) announced today that it and its wholly owned subsidiary, SunCoke Energy Partners Finance Corp. ("Finance Corp." and together, the "Issuers"), intend to commence a private offering to eligible purchasers of $675 million aggregate principal amount of senior unsecured notes due 2025 (the "Senior Notes"). The Senior Notes will be fully and unconditionally guaranteed by all of SXCP's current subsidiaries (other than Finance Corp.) and certain of its future subsidiaries.
SXCP intends to use the net proceeds received from this offering, together with borrowings under a new revolving credit facility and cash on hand, to fund the purchase of its 7.375% senior notes due 2020 ("2020 Senior Notes") in a tender offer (the "Tender Offer") and repay borrowings outstanding under its existing revolving credit facility, term loan and promissory note. The Tender Offer is being made pursuant to an Offer to Purchase dated May 16, 2017. To the extent that the Tender Offer is not completed or the net proceeds of this offering, together with borrowings under a new revolving credit facility and cash on hand, exceed the amount needed to fund the Tender Offer and repay borrowings outstanding under SXCP's existing revolving credit facility, term loan and promissory note, SXCP may use the remaining net proceeds from the offering for general partnership purposes, which may include redeeming or otherwise repurchasing 2020 Senior Notes.
The Senior Notes will not be registered under the Securities Act of 1933, as amended (the "Securities Act"), or the securities laws of any state and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements under the Securities Act and applicable state securities laws. The Senior Notes may be resold by the initial purchasers pursuant to Rule 144A and Regulation S under the Securities Act. This press release is being issued pursuant to Rule 135c under the Securities Act.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy the Senior Notes nor shall there be any sale of the Senior Notes in any jurisdiction in which the offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction.
Some of the statements included in this press release constitute "forward-looking statements." Forward-looking statements include all statements that are not historical facts and may be identified by the use of such words as "believe," "expect," "plan," "project," "intend," "anticipate," "estimate," "predict," "potential," "continue," "may," "will," "should" or the negative of these terms or similar expressions. Forward-looking statements are inherently uncertain and involve significant known and unknown risks and uncertainties (many of which are beyond the control of SXCP) that could cause actual results to differ materially.
Such risks and uncertainties include, but are not limited to, domestic and international economic, political, business, operational, competitive, regulatory, and/or market factors affecting SXCP, as well as uncertainties related to: pending or future litigation, legislation or regulatory actions; liability for remedial actions or assessments under existing or future environmental regulations; gains and losses related to acquisition, disposition or impairment of assets; recapitalizations; access to, and costs of, capital; the effects of changes in accounting rules applicable to SXCP; and changes in tax, environmental and other laws and regulations applicable to SXCP's businesses.
Forward-looking statements are not guarantees of future performance, but are based upon the current knowledge, beliefs and expectations of SXCP management, and upon assumptions by SXCP concerning future conditions, any or all of which ultimately may prove to be inaccurate. The reader should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. SXCP does not intend, and expressly disclaims any obligation, to update or alter its forward-looking statements (or associated cautionary language), whether as a result of new information, future events or otherwise after the date of this press release except as required by applicable law.
SXCP has included in its filings with the Securities and Exchange Commission cautionary language identifying important factors (but not necessarily all the important factors) that could cause actual results to differ materially from those expressed in any forward-looking statement made by SXCP. For information concerning these factors, see SXCP's Securities and Exchange Commission filings such as its annual and quarterly reports and current reports on Form 8-K, copies of which are available free of charge on SXCP's website at www.suncoke.com. All forward-looking statements included in this press release are expressly qualified in their entirety by such cautionary statements. Unpredictable or unknown factors not discussed in this release also could have material adverse effects on forward-looking statements.
ABOUT SUNCOKE ENERGY PARTNERS, L.P.
SunCoke Energy Partners, L.P. (NYSE: SXCP) is a publicly traded master limited partnership that manufactures high-quality coke used in the blast furnace production of steel and provides export and domestic coal handling services to the coke, coal, steel and power industries. In our cokemaking business, we utilize an innovative heat-recovery technology that captures excess heat for steam or electrical power generation and have long-term, take-or-pay coke contracts that pass through commodity and certain operating costs. Our coal handling terminals have the collective capacity to blend and transload more than 40 million tons of coal each year and are strategically located to reach Gulf Coast, East Coast, Great Lakes and international ports. SXCP's General Partner is a wholly owned subsidiary of SunCoke Energy, Inc. (NYSE: SXC), which has more than 50 years of cokemaking experience serving the integrated steel industry. To learn more about SunCoke Energy Partners, L.P., visit our website at www.suncoke.com.
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SOURCE SunCoke Energy Partners, L.P.