Koppers, a wholly-owned subsidiary of Koppers Holdings, entered into a credit agreement with Koppers Holdings, certain lenders and letter of credit issuers for an $800 million revolving credit facility, a $50 million swingline facility and one or more incremental revolving or term loan facilities. PNC Bank will serve as the revolving administrative agent, collateral agent and swingline loan lender, and Wells Fargo Bank will serve as term administrative agent.

The agreement replaces a prior agreement for a $600 million senior secured revolving credit facility and a $100 million senior secured term loan facility.  The agreement provides lower pricing tiers and additional financial flexibility to support the company’s ongoing growth strategy as well as sustainability initiatives. The agreement also permits the company, in consultation with the co-sustainability agents, PNC Capital Markets and BofA Securities, to amend the agreement for the purpose of incorporating either key performance indicators (KPIs) with respect to certain environmental, social and governance (ESG) targets or external ESG ratings targets. Certain pricing adjustments may be made under the Agreement based on the company’s performance against the KPIs or upon achieving the external ESG targets.

“Koppers consistently maintains a strong balance sheet and credit profile, and our disciplined track record helps to ensure that we have the financial flexibility to support the company’s continued expansion,” Jimmi Sue Smith, CFO of Koppers, said.  “We are pleased to have entered into this agreement, which further positions us to create long-term value for our shareholders.”

“This agreement also reflects our broader commitment to sustainability and marks a natural evolution towards integrating applicable ESG goals into our liquidity framework,” Smith said. “At Koppers, our approach to sustainability is rooted in our relentless efforts to do things the right way for all our stakeholders, and we will keep innovating on their behalf and with safety and sustainability at the core of our culture.”

The agreement will mature on June 17, 2027, subject to a springing maturity provision, contains customary covenants for credit facilities of this type and is secured by a lien on substantially all of the company’s assets.