SunCoke shares fall in market debut
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Lisle-based SunCoke Energy Partners LP's shares fell almost 4 percent in midday trading following their market debut on the New York Stock Exchange.
The metallurgical coke company had been a subsidiary of coal producer SunCoke Energy Inc. Metallurgical coke is used in making steel.
The company priced its stock at $19 per share, raising $256.5 million before expenses. That was at the low end of the $19 to $21 per share range that was expected, however.
Its shares fell 69 cents, or 3.6 percent, to $18.31 in midday trading after sinking as low as $18 earlier in the session. They traded as high as $19.28.
SunCoke is selling 13.5 million shares and has given the underwriters the option to buy another 2 million shares to cover over allotments.
The company plans to use the proceeds for working capital, to pay down debt and to return a portion to SunCoke Energy for costs related to the expansion and improvement of two plants.
The partnership also said Friday that it is selling $150 million of its senior unsecured notes, which are due in 2020, through a private placement. The notes offering is expected to close on Jan. 24 in connection with the IPO.
