SunCoke Energy, Inc. Announces Brazil Coke Facility Transactions
November 29 2016 - 5:00PM
Business Wire
SunCoke Energy, Inc. (NYSE: SXC) has announced that
ArcelorMittal Brasil S.A. (”ArcelorMittal”) is redeeming SunCoke’s
indirectly held preferred and common equity interest in Sol
Coqueria Tubarão S.A. (the ”Brazil facility”) for cash
consideration of $41 million. SunCoke received $20.5 million in
cash at closing and will receive the remaining $20.5 million in
cash, plus accrued interest, on April 1, 2017. Under the coke plant
shareholders agreement, ArcelorMittal had the right to call the
preferred interest at par in 2023 and as such, the parties
negotiated an acceleration of that right. With the redemption,
SunCoke will no longer receive its approximately $9.5 million
annual dividend from ArcelorMittal.
Additionally, starting in 2016, SunCoke will receive an
incremental $5.1 million in technology fees per year through 2023
related to the addition of certain patents to its existing
intellectual property licensing agreement, which are currently in
use by ArcelorMittal at the Brazil facility. The total impact of
these transactions is a net reduction of $4.4 million to annual
Adjusted EBITDA.
SunCoke will continue to earn existing operating and technology
fees of approximately $10 million per year through 2023 and when
combined with the new $5.1 million in technology fees, the total
expected Adjusted EBITDA contribution from the Brazil facility is
expected to be approximately $15 million per year. Even with this
change, the Company reaffirmed its 2016 Adjusted EBITDA guidance of
$210 million to $235 million.
SunCoke will continue to operate the Brazil facility on behalf
of ArcelorMittal. The heat-recovery coke plant produces
approximately 1.7 million tons of high-quality coke each year from
its 320 ovens.
ABOUT SUNCOKE ENERGY, INC.
SunCoke Energy, Inc. (NYSE: SXC) supplies high-quality coke to
the integrated steel industry under long-term, take-or-pay
contracts that pass through commodity and certain operating costs
to customers. We utilize an innovative heat-recovery cokemaking
technology that captures excess heat for steam or electrical power
generation. We are the sponsor of SunCoke Energy Partners, L.P.
(NYSE: SXCP), a publicly traded master limited partnership, holding
a 2 percent general partner interest, 53.9 percent limited
partnership interest and all of the incentive distribution rights.
Our cokemaking facilities are located in Illinois, Indiana, Ohio,
Virginia, Brazil and India. To learn more about SunCoke Energy,
Inc., visit our website at www.suncoke.com.
FORWARD-LOOKING STATEMENTS
Some of the statements included in this press release constitute
“forward-looking statements” (as defined in Section 27A of the
Securities Act of 1933, as amended and Section 21E of the
Securities Exchange Act of 1934, as amended). 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
SXC) 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 SXC, 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 SXC; and
changes in tax, environmental and other laws and regulations
applicable to SXC's businesses.
Forward-looking statements are not guarantees of future
performance, but are based upon the current knowledge, beliefs and
expectations of SXC management, and upon assumptions by SXC
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. SXC 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. In
accordance with the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995, SXC has included in its
filings with the Securities and Exchange Commission (the “SEC”)
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 SXC. For information concerning
these factors, see SXC'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 SXC'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.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20161129006324/en/
SunCoke Energy, Inc.Investors:Kyle Bland,
630-824-1907orMedia:Steve
Carlson, 630-824-1783
SunCoke Energy (NYSE:SXC)
Historical Stock Chart
From Mar 2024 to Apr 2024
SunCoke Energy (NYSE:SXC)
Historical Stock Chart
From Apr 2023 to Apr 2024