SunCoke Energy, Inc. (NYSE:SXC) Files An 8-K Entry into a Material Definitive Agreement

SunCoke Energy, Inc. (NYSE:SXC) Files An 8-K Entry into a Material Definitive Agreement

Story continues below

Item1.01.

Entry into a Material Definitive
Agreement
.

Credit Agreement

On May24, 2017, SunCoke Energy, Inc., as borrower (the
Borrower), the several lenders party thereto from time
to time and Bank of America, N.A., as administrative agent,
entered into a credit agreement which amended and restated the
Borrowers existing credit agreement, dated July26, 2011 (as
amended and restated, the Credit Agreement).

The Credit Agreement provides for a $100 million secured credit
facility allowing for the borrowing of revolving loans and,
subject to a $50 million sublimit, the issuance of letters of
credit. Loans under the Credit Agreement bear interest, at the
Borrowers option, at a rate per annum equal to either the
adjusted Eurodollar Rate (which is the London Interbank Offered
Rate (LIBOR), which cannot be less than zero, adjusted
for eurocurrency reserve requirements) for interest periods of
one, two, three or six months plus a specified margin, or the
Alternate Base Rate, plus a specified margin. The Alternate Base
Rate is a fluctuating rate equal to the highest of (a)the Federal
Funds Effective Rate (which cannot be less than zero) plus 0.50%,
(b)the rate of interest publicly announced from time to time by
Bank of America as its prime rate and (c)LIBOR plus 1.0%. The
specified margin ranges from 0.75% to 1.25% for loans bearing
interest at the Alternate Base Rate and from 1.75% to 2.25% for
loans bearing interest at the adjusted Eurodollar Rate. The
specified margin is calculated based upon the Borrowers
consolidated total leverage ratio from time to time.

Fees payable with respect to outstanding letters of credit range
from 1.75% to 2.25% depending on the Borrowers consolidated total
leverage ratio from time to time and a fronting fee of 0.25%per
annum. Unused commitments are subject to a commitment fee of
0.40%per annum.

The Credit Agreement matures on May24, 2022, at which time all
amounts then outstanding under the Credit Agreement will become
due. Mandatory prepayments also will be required for certain
sales of assets, certain events of loss, or incurrence of
additional indebtedness not permitted under the Credit Agreement.

The Credit Agreement allows the Borrower, subject to certain
conditions, to obtain up to $50 million of incremental revolving
loans or term loans subject to obtaining commitments from
existing or additional lenders.

The Credit Agreement contains certain covenants, restrictions and
events of default including, but not limited to, limitations on
the ability of the Borrower and its subsidiaries to (i)incur
indebtedness, (ii)make distributions, (iii)prepay, redeem or
repurchase certain debt, (iv)make loans and investments, (v)sell
assets, (vi)incur liens, (vii)enter into transactions with
affiliates and (viii)consolidate or merge.

The Credit Agreement also contains financial covenants requiring
the Borrower and its consolidated subsidiaries to maintain:

A maximum consolidated total funded debt to EBITDA ratio not
to exceed 3.25 to 1.0 for any period of four consecutive
fiscal quarters, commencing with the fiscal quarter ending
June30, 2017 and for every fiscal quarter thereafter until
the maturity of the Credit Agreement; and
A minimum EBITDA to interest expense ratio not to be less
than 2.75 to 1.0 for any period of four consecutive fiscal
quarters, commencing with the fiscal quarter ending June30,
2017 and for every fiscal quarter thereafter until the
maturity of the Credit Agreement.

If an event of default (as such term is defined in the Credit
Agreement) occurs, the lenders would be entitled to take various
actions, including the acceleration of amounts due under the
Credit Agreement, termination of the lenders commitments
thereunder, foreclosure on collateral, and all other remedial
actions available to a secured creditor.

The obligations under the Credit Agreement are guaranteed by
certain of the Borrowers subsidiaries and secured by liens on
substantially all of the Borrowers and the guarantors real and
personal property assets to (i)an amended and restated guarantee
and collateral agreement among the Borrower, the subsidiaries of
the Borrower party thereto and Bank of America, N.A, as
administrative agent and collateral agent for the secured parties
and (ii)mortgages and deeds of trust covering properties in
Virginia.

The Borrower will use the proceeds of the Credit Facility to
finance capital expenditures, acquisitions, working capital
needs, the making of distributions, the repayment of other
indebtedness, and for other general corporate purposes.

A copy of the Credit Agreement is filed as Exhibit 10.1 to
this report and is incorporated by reference herein. The
foregoing descriptions of the Credit Agreement is qualified in
its entirety by reference to the actual terms of the Credit
Agreement.

Item2.03. Creation of a Direct Financial Obligation or an
Obligation under an Off Balance Sheet Arrangement of a
Registrant
.

The information in Item1.01 of this report is incorporated in
this Item2.03 by reference.

Item9.01. Financial Statements and Exhibits.

(d) Exhibits.

Exhibit No.

Description

10.1 Amended and Restated Credit Agreement, dated May 24, 2017,
among SunCoke Energy, Inc., as borrower, the several lenders
party thereto from time to time and Bank of America, N.A., as
administrative agent.


About SunCoke Energy, Inc. (NYSE:SXC)

SunCoke Energy, Inc. is an independent producer of coke in the Americas. The Company also provides coal handling and/or mixing services at its Coal Logistics terminals. The Company’s segments include Domestic Coke, Brazil Coke, India Coke, Coal Logistics, and Corporate and Other. The Domestic Coke segment consists of its Jewell, Indiana Harbor, Haverhill, Granite City and Middletown cokemaking and heat recovery operations located in Vansant, Virginia; East Chicago, Indiana; Franklin Furnace, Ohio; Granite City, Illinois, and Middletown, Ohio, respectively. The Brazil Coke segment operates a cokemaking facility located in Vitoria, Brazil for a project company. The India Coke segment consists of its cokemaking joint venture with Visa Steel Limited in Odisha, India. The Coal Logistics segment consists of its coal handling and/or mixing service operations in East Chicago, Indiana; Ceredo, West Virginia; Belle, West Virginia; Catlettsburg, Kentucky, and Convent, Louisiana.

SunCoke Energy, Inc. (NYSE:SXC) Recent Trading Information

SunCoke Energy, Inc. (NYSE:SXC) closed its last trading session down -0.02 at 8.98 with 516,347 shares trading hands.

An ad to help with our costs