PHILADELPHIA--(BUSINESS WIRE)--Sunoco, Inc. (NYSE: SUN) took another step today toward the previously announced separation of its metallurgical cokemaking business from its other businesses with the filing by its subsidiary, SunCoke Energy, Inc. (“SunCoke”), of a registration statement with the Securities and Exchange Commission (“SEC”) for a proposed initial public offering of shares of SunCoke’s common stock. The number of shares to be offered and the price range for the offering have not yet been determined.
The initial public offering is anticipated to be completed in 2011. At the completion of the proposed offering, Sunoco will continue to own more than 80 percent of the outstanding common stock of SunCoke. Subsequent to the completion of the proposed offering, Sunoco intends to distribute the balance of its SunCoke shares to Sunoco shareholders by means of a spin-off that is intended to qualify as a tax-free transaction.
Credit Suisse Securities (USA) LLC will act as the lead book-running manager for the proposed offering. A copy of the preliminary prospectus for the proposed offering may be obtained, when available, from: Credit Suisse Securities (USA) LLC, Attn: Credit Suisse Prospectus Department, One Madison Avenue, New York, NY 10010, or by phone at (800) 221-1037.
A registration statement relating to these securities has been filed with the SEC but has not yet become effective. These securities may not be sold nor may offers to buy these securities be accepted prior to the time the registration statement becomes effective. This release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state.
Forward-Looking Statements
Certain statements in this announcement are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act. These forward-looking statements are based upon assumptions by Sunoco concerning future conditions, any or all of which ultimately may prove to be inaccurate, and upon the current knowledge, beliefs and expectations of Sunoco management. Such statements are subject to certain risks and uncertainties that could cause actual results to differ materially from expectations. These risks and uncertainties include, but are not limited to, statements regarding Sunoco’s expectations to separate its metallurgical cokemaking business from the rest of its businesses, to complete the initial public offering of SunCoke, to complete the distribution of SunCoke shares held by Sunoco following the offering and regarding the tax treatment of the distribution. Additional cautionary statements regarding other risk factors that could have an effect on the future performance of Sunoco are detailed in the annual reports on Form 10-K filed by Sunoco with the SEC. Forward-looking statements made in this press release speak as of the date hereof. Sunoco undertakes no obligation to update these statements for revisions or changes after the date of this announcement.
About Sunoco
Sunoco is a leading transportation fuel provider with operations located primarily in the East Coast and Midwest regions of the United States. The company sells transportation fuels through more than 4,900 branded retail locations in 23 states. APlus convenience stores are operated by the company or independent dealers in more than 600 of its retail locations. The retail network in the Northeast is principally supplied by Sunoco-owned refineries with a combined crude oil processing capacity of 505,000 barrels per day. Sunoco is also the General Partner and has a 31-percent interest in Sunoco Logistics Partners, L.P., a publicly traded master limited partnership which owns and operates 7,600 miles of refined product and crude oil pipelines and approximately 40 active product terminals. Many of Sunoco Logistics' pipelines and terminals and storage facilities are integrated with Sunoco's retail network and refineries. Through SunCoke Energy, Sunoco makes high-quality metallurgical-grade coke for major steel manufacturers. The company's facilities in the U.S. have the capacity to manufacture approximately 3.67 million tons of metallurgical coke annually. Sunoco also is the operator of, and has an equity interest in, a 1.7 million tons-per-year coke-making facility in Vitória, Brazil.