On Oct. 1, SunCoke Energy Partners LP (NYSE: SXCP) completed the acquisition of 100% of the ownership interest in Kanawha River Terminals LLC (KRT) for $86m.
SXCP said it financed this acquisition with a combination of available cash and its existing revolving credit facility.
KRT is a leading metallurgical and thermal coal blending/handling terminal service provider with the collective capacity to blend and transload more than 30 million tons of coal annually. Due to its strategic river locations and convenient access to highways and railroads, KRT can deliver products to U.S. ports in the Gulf Coast, East Coast and Great Lakes.
KRTs operations are expected to be immediately accretive to SXCP cash flows and earnings, generating a projected $12m in EBITDA on an annualized basis and contributing an estimated $6m to distributable cash flow annually.
SXCP purchased KRT from Traxys North America LLC, an international financing, marketing, distribution and trading company. This is SXCP’s second acquisition in 2013, the first of which was Lakeshore Coal Handling Corp. in Indiana, which closed on Aug. 30.
KRT owns four coal handling facilities, the largest of which is the Ceredo Terminal located on the Ohio River in West Virginia. This terminal has both inbound and outbound rail logistics provided by CSX Transportation and Norfolk Southern and the capability to offload and load barges. As a result, the Ceredo terminal is able to serve both domestic and international export markets.
KRT’s other coal handling facilities are located on the Big Sandy and Kanawha rivers, as well as on Kentucky Highway 1185 near Louisa, Ky. In addition, KRT owns an idled liquids terminal on the Ohio River that has more than four million gallons of liquid storage capacity.
SunCoke Energy Partners is a publicly-traded master limited partnership that manufactures coke used in the blast furnace production of steel and provides coal handling services to the coke, steel and power industries. Its coal handling terminals have the collective capacity to blend and transload more than 30 million tons of coal annually and enable material delivery to U.S. ports in the Gulf Coast, East Coast and Great Lakes. Its General Partner is a wholly owned subsidiary of SunCoke Energy (NYSE: SXC), the largest independent producer of coke in the Americas.