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United States : SunCoke Energy Partners acquires stake in Haverhill and MIDDLETOWN COKEMAKING FACILITIES.

An additional 33 percent interest in each of the Haverhill and Middletown cokemaking facilities has been purchased by SunCoke Energy Partners L.P from its sponsor, SunCoke Energy Inc.

XCP's ownership interest in these facilities rises from 65 percent to 98% with the closing of this deal.

$365 million was the total consideration paid to SXC for the 33% interest was $365 million, and it covers $80 million of limited partner interest, or 2.7 million common limited partner units, $3.3 million of general partner interest and $10.4 million of cash, of which $7 million was retained by SXCP to prefund SXC's obligation for the anticipated cost of an environmental remediation project at Haverhill.

Additionally, SXCP assumed and immediately paid down $99.9 million of SXC's outstanding term loan debt and $171.4 million of SXC's 7.625 percent senior notes, inclusive of an $11.4 million tender offer premium.

It is anticipated by SXCP to distinguish between $15 million to $18 million of additional interest and financing expense in second quarter 2014.

As a result of the debt extinguishment and tender offer premium, SXCP expects to recognize between $15 million to $18 million of additional interest and financing expense in second quarter 2014.

On an annual basis, the additional interest in the Haverhill and Middletown cokemaking facilities is expected to contribute about $44 million to Adjusted EBITDA, net of $5 million of incremental corporate costs, and add $23 million, or $0.18 per limited partner unit, to distributable cash flow, SXCP said.

SXCP's full year 2014 outlook for Adjusted EBITDA is now $132 million to $139 million and $89 million to $96 million for disseminate cash flow, grounded on the deal closing.

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Publication:Mena Report
Date:May 12, 2014
Words:298
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