Reduces Interest Rate Margins by 50 Basis
Points
Increases TLB by $100
Million
PITTSBURGH, April 15,
2024 /PRNewswire/ -- Koppers Holdings Inc.
(NYSE: KOP), an integrated global provider of treated wood
products, wood treatment chemicals, and carbon compounds, today
announced that the company successfully completed the repricing and
upsizing of its seven-year $397
million senior secured Term Loan B (TLB) due April 10, 2030.
This transaction reduces the interest rate margins applicable to
the TLB by 50 basis points, from 3.50% with a floor of 50 bps to
3.00% with a floor of 50 bps at adjusted Term SOFR Rate or adjusted
Daily Simple SOFR and removes the 10 bps credit spread
adjustment from the pricing structure of the TLB. In addition,
the TLB was upsized, at par, by $100
million, increasing the principal balance to $497 million.
Proceeds from the TLB will be used for general corporate
purposes. The company intends to reduce borrowings under its
revolving credit facility, including recent borrowings to fund the
acquisition of Brown Wood Preserving.
"We are pleased with the strong market demand for our Term Loan
B, and with the enhanced liquidity and financial flexibility this
transaction provides," said Chief Financial Officer Jimmi Sue Smith. "Koppers continues to deliver
on our expand and optimize strategy, while strengthening our
balance sheet and improving our credit metrics, and we
appreciate the resulting recognition and support of the
markets."
Wells Fargo Bank, National Association is acting as
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.
About Koppers
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.
Safe Harbor Statement
Certain statements in this press release are "forward-looking
statements" within the meaning of the Private Securities Litigation
Reform Act of 1995 and may include, but are not limited to,
statements about sales levels, acquisitions, restructuring,
declines in the value of Koppers assets and the effect of any
resulting impairment charges, profitability and anticipated
expenses and cash outflows. All forward-looking statements involve
risks and uncertainties.
All statements contained herein that are not clearly historical
in nature are forward-looking, and words such as "outlook,"
"guidance," "forecast," "believe," "anticipate," "expect,"
"estimate," "may," "will," "should," "continue," "plan,"
"potential," "intend," "likely," or other similar words or phrases
are generally intended to identify forward-looking statements. Any
forward-looking statement contained herein, in other press
releases, written statements or other documents filed with the
Securities and Exchange Commission, or in Koppers communications
and discussions with investors and analysts in the normal course of
business through meetings, phone calls and conference calls,
regarding future dividends, expectations with respect to sales,
earnings, cash flows, operating efficiencies, restructurings, the
benefits of acquisitions, divestitures, joint ventures or other
matters as well as financings and debt reduction, are subject to
known and unknown risks, uncertainties and contingencies.
Many of these risks, uncertainties and contingencies are beyond
our control, and may cause actual results, performance or
achievements to differ materially from anticipated results,
performance or achievements. Factors that might affect such
forward-looking statements include, among other things, the impact
of changes in commodity prices, such as oil and copper, on product
margins; general economic and business conditions; potential
difficulties in protecting our intellectual property; the ratings
on our debt and our ability to repay or refinance our outstanding
indebtedness as it matures; our ability to operate within the
limitations of our debt covenants; unexpected business disruptions;
potential impairment of our goodwill and/or long-lived assets;
demand for Koppers goods and services; competitive conditions;
capital market conditions, including interest rates, borrowing
costs and foreign currency rate fluctuations; availability and
fluctuations in the prices of key raw materials; disruptions and
inefficiencies in the supply chain; economic, political and
environmental conditions in international markets; changes in laws;
the impact of environmental laws and regulations; unfavorable
resolution of claims against us, as well as those discussed more
fully elsewhere in this release and in documents filed with
the Securities and Exchange Commission by Koppers,
particularly our latest annual report on Form 10-K and any
subsequent filings by Koppers with the Securities and Exchange
Commission. Any forward-looking statements in this release speak
only as of the date of this release, and we undertake no obligation
to update any forward-looking statement to reflect events or
circumstances after that date or to reflect the occurrence of
unanticipated events.
For
Information:
|
Quynh McGuire, Vice
President, Investor Relations
412 227 2049
McGuireQT@koppers.com
|
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SOURCE KOPPERS HOLDINGS INC.