MRO Magazine

SunCoke Energy Partners, L.P. Completes Convent Marine Terminal and Granite City Cokemaking Facility Acquisitions

August 12, 2015 | By Business Wire News


SunCoke Energy Partners, L.P. (NYSE: SXCP) today closed on its previously announced acquisitions of the Convent Marine Terminal (CMT) and additional 23 percent interest in the Granite City cokemaking facility for $412 million and $67 million, respectively.

The CMT acquisition, purchased from an affiliate of The Cline Group, was funded via a combination of equity, seller financing and cash as previously announced. The cash portion of the transaction was primarily financed by a $185 million draw on our revolving credit facility, which we expect to term-out with long-term financing subject to market conditions.

The Granite City dropdown was funded with $20.1 million of equity and assumption of $46.9 million of SXC’s senior notes, inclusive of accrued interest and redemption premium. We plan to redeem these notes when we term-out the revolver borrowing with long-term financing as noted above. SXCP now owns a 98 percent interest in the Granite City facility.


We plan to participate in the following conferences:

  • Citi MLP/Midstream Infrastructure Conference, August 19-20, 2015, Las Vegas, NV
  • Deutsche Bank Leveraged Finance Conference, September 28-30, 2015, Scottsdale, AZ


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 45 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


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 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.

Convent Marine Terminal Acquisition
and Granite City Dropdown Transaction Financing
  Convent Marine

($ in millions)

  Terminal   Granite City   Total
Equity to The Cline Group $82.4 $82.4
Equity to SXC $30.0 $20.1 $50.1
Term Loan/Seller Financing (1) $114.6 $114.6
Credit Revolver(2) $185.0 $185.0
Debt Assumption(2)       $46.9   $46.9
    $412.0   $67.0   $479.0
(1) Six-year term loan with initial three years at 6% transitioning to L+450 for remaining three years
(2) Expect to term-out revolving credit facility and redeem debt assumed with long-term financing subject to market conditions

SunCoke Energy Partners, L.P.
Lisa Ciota: (630) 824-1987
Steve Carlson: (630) 824-1783


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