Koppers Announces Pricing and Allocation of $400 Million Term Loan B

13 March 2023

Koppers Holdings Inc. 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.