LISLE, Ill.--(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
, 630-824-1907
or
Media:
Steve
Carlson
, 630-824-1783
Source: SunCoke Energy, Inc.
