Koppers Upsizes TLB by $100 Million

By Bobby Samwell • Monday, April 15 10:18 • Permanent Link

Koppers Holdings Inc. has announced successful changes to its senior secured term loan B (TLB) in a move that both reprices and upsizes the loan. The seven-year $397 million TLB, due April 10, 2030, has been upsized by $100 million to a principal balance of $497 million. This increase in the TLB will provide Koppers with enhanced liquidity and financial flexibility for general corporate purposes.

The transaction has also resulted in a reduction of the interest rate margins applicable to the TLB by 50 basis points, from 3.50% to 3.00% at adjusted term SOFR rate or adjusted daily simple SOFR. Additionally, the transaction removes the 10 basis points credit spread adjustment from the pricing structure of the TLB.

The company intends to use the proceeds from the TLB for general corporate purposes, including the reduction of borrowings under its revolving credit facility, which includes recent borrowings to fund the acquisition of Brown Wood Preserving.

Koppers' CFO, Jimmi Sue Smith, expressed satisfaction with the strong market demand for the TLB and the enhanced liquidity and financial flexibility provided by the transaction. Smith also highlighted the company's commitment to delivering on its expand and optimize strategy, while also strengthening its balance sheet and improving its credit metrics.

Wells Fargo Bank, National Association, is acting as the administrative agent for the TLB, with Wells Fargo Securities, LLC, PNC Capital Markets LLC, BofA Securities, Inc., Fifth Third Bank, National Association, Citizens Bank, N.A., and Truist Securities, Inc. serving as the joint lead arrangers and bookrunners for the TLB.

Koppers Holdings Inc., headquartered in Pittsburgh, Pennsylvania, is a global provider of treated wood products, wood treatment chemicals, and carbon compounds. Their products and services are utilized across various niche applications in a diverse range of end markets around the world. The company's stock is publicly traded on the New York Stock Exchange under the symbol "KOP." Today the company's shares have moved 1.6% to a price of $55.95. If you want to know more, read the company's complete 8-K report here.

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