Convent, located in St. James Parish, is considered one of the Gulf Coast’s largest export facilities; with both vessel and direct rail access, it has a capacity of about 10 million tons of coal annually. It currently is operating at capacity thanks to a vast collection of long-term contracts, primarily from the Illinois Basin (ILB).
Convent recently underwent a $100 million modernization project that increased its efficiency. When improved again with an additional $20 million in pre-funded investment, SunCoke noted, the facility will become even more competitive with an expanded capacity of 15 million tons annually.
“This acquisition will represent a compelling strategic fit by adding a preeminent export asset to our coal logistics business,” SunCoke Chairman and CEO Fritz Henderson said. “We expect this transaction will be accretive from day one with consistent earnings and stable cash flows for SXCP, resulting in increased cash distributions to SXCP unitholders and higher incentive distribution payments to our general partner.”
“We are very pleased to enter into this strategic partnership with SunCoke Energy Partners and believe that Convent Marine Terminal will complement an already compelling business model,” said Christopher Cline, founder and owner of The Cline Group. “We are extremely proud of what the Convent team has accomplished over the past four years and I look forward to sharing in its future success as a substantial investor in SXCP.”
The transaction is expected to close by September 1, subject to customary closing conditions and regulatory approvals.