Koppers Holdings, a provider of treated wood products, wood treatment chemicals and carbon compounds, completed the repricing and upsizing of its seven-year senior secured term loan B due April 10, 2030.
This transaction reduces the interest rate margins applicable to the term loan by 50 basis points from 3.5% with a floor of 50 basis points to 3% with a floor of 50 basis points at adjusted Term SOFR or adjusted Daily Simple SOFR. The transaction also removes the 10-basis-point credit spread adjustment from the pricing structure of the term loan. In addition, the term loan was upsized, at par, by $100 million, increasing the principal balance to $497 million.
Wells Fargo is acting as administrative agent for the term loan. Wells Fargo Securities, PNC Capital Markets, BofA Securities, Fifth Third Bank, Citizens Bank and Truist Securities are acting as joint lead arrangers and bookrunners for the term loan.
Koppers will use proceeds from the term loan 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,” Jimmi Sue Smith, CFO of Koppers, said. “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.”
