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SunCoke Energy to Acquire All Publicly Traded Common Units of SunCoke Energy Partners in Simplification Transaction
Friday 08 February 2019

8 February 2019 - Illinois, US-based SunCoke Energy, Inc. (NYSE: SXC) has entered into a definitive agreement to acquire all outstanding common units of SunCoke Energy Partners, L.P. (NYSE: SXCP), not already owned by SXC, in a stock-for-unit merger transaction (simplification transaction), the company said.
Pursuant to the terms of the merger agreement, SXCP unaffiliated common unitholders will receive 1.40 SXC common shares for each SXCP common unit.
The SXCP unit price implied by the exchange ratio represents a 9.3% premium to SXCP's closing price on February 4, 2019 and a 12.7% premium. Additional details of the transaction were not disclosed.
SXC said with a simplified corporate structure, increased liquidity and improved financial flexibility, the company will be better positioned to execute on strategic growth opportunities and generate immediate and long-term value for SXC and SXCP stakeholders.
The transaction will simplify the organisational and governance structure, reducing complexity for investors, offer enhanced access to capital markets with a lower cost of capital and make more cash flow available to deploy organic growth products and M and A opportunities.
SunCoke Energy, Inc. (NYSE: SXC) and its sponsored master limited partnership subsidiary, SunCoke Energy Partners, L.P. (NYSE: SXCP), supply high-quality coke used in the blast furnace production of steel, under long-term, take-or-pay contracts that pass through commodity and certain operating costs to customers. The company's cokemaking facilities are located in Illinois, Indiana, Ohio, Virginia and Brazil.
Evercore and Baker Botts L.L.P. acted as financial and legal advisors, respectively, to SXC. Citi and Akin Gump Strauss Hauer and Feld LLP acted as financial and legal advisors, respectively, to the conflicts committee of the general partner of SXCP.
Details
Date Published: 08/02/2019
Target: SunCoke Energy Partners, L.P. (NYSE: SXCP)
Country: USA
Deal Size: 680m (USD)
Sector: Petroleum/Natural Gas/Coal
Type: Corporate acquisition
Financing: Stock
Status: Agreed
Vendor:
Buyer: SunCoke Energy, Inc
Buyer Advisor: Evercore , Baker Botts
Comment:


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