Koppers Announces Pricing and Allocation of $400 Million Term Loan B
Koppers Holdings Inc. (NYSE: KOP), an integrated global provider of treated wood products, wood treatment chemicals, and carbon compounds, today announced the successful pricing and allocation of a 7-year $400 million senior secured Term Loan B (TLB). The TLB will bear interest at adjusted Term SOFR plus 4.00% with a SOFR floor of 50 bps.
Koppers plans to use the proceeds borrowed under the TLB, along with borrowing under its revolving credit facility, to redeem the company’s outstanding $500 million 6.00% Senior Unsecured Notes that are due in 2025 (2025 Notes).
Commenting on the deal, Chief Financial Officer Jimmi Sue Smith said, “With this transaction, Koppers will be taking specific and favorable actions to enhance balance sheet flexibility, one of our core strategic pillars. By extending the maturity date for our debt profile, we will be reducing risk and gaining flexibility.”
Wells Fargo Bank, National Association is acting as sole and exclusive administrative agent for the TLB. Wells Fargo Securities LLC, PNC Capital Markets LLC, BofA Securities, Inc., Fifth Third Bank, National Association, Citizens Bank, N.A. and Truist Securities, Inc. are acting as joint lead arrangers and bookrunners for the TLB.
Koppers expects to close the TLB transaction in mid-April 2023, in conjunction with the redemption of the 2025 Notes.
Koppers, with corporate headquarters in Pittsburgh, Pennsylvania, is an integrated global provider of treated wood products, wood treatment chemicals, and carbon compounds. Our products and services are used in a variety of niche applications in a diverse range of end markets, including the railroad, specialty chemical, utility, residential lumber, agriculture, aluminum, steel, rubber, and construction industries. We serve our customers through a comprehensive global manufacturing and distribution network, with facilities located in North America, South America, Australasia, and Europe. The stock of Koppers Holdings Inc. is publicly traded on the New York Stock Exchange under the symbol “KOP.”
For more information, visit: www.koppers.com. Inquiries from the media should be directed to Ms. Jessica Franklin Black at BlackJF@koppers.com or 412-227-2025. Inquiries from the investment community should be directed to Ms. Quynh McGuire at McGuireQT@koppers.com or 412-227-2049.
Quynh McGuire – Vice President, Investor Relations – McGuireQT@koppers.com – (412) 227-2049
Source: Koppers Holdings, Inc.