SunCoke shares fall in market debut

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News,Business

LISLE, Ill. (AP) — SunCoke Energy Partners LP's shares fell nearly 4 percent in their first day of trading on the New York Stock Exchange.

The Lisle, Ill.-based 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.

The shares traded between $18 and $19.28 the first day out. They closed down 75 cents at $18.25.

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 senior unsecured notes due in 2020, through a private placement. The notes offering is expected to close Thursday.

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