Koppers Holdings Inc. Successfully Amends Credit Agreement, Reducing Interest Rate Margins

On December 17, 2024, Koppers Holdings Inc. (NYSE: KOP) announced in an 8-K filing the successful execution of Amendment No. 5 to its Credit Agreement. The company’s wholly-owned subsidiary, Koppers Inc., entered into this amendment with certain lenders and letter of credit issuers along with PNC Bank, National Association, and Wells Fargo Bank, National Association.

Amendment No. 5 to the Credit Agreement, initially dated June 17, 2022, outlines a reduction in the interest rate margins applicable to the $494,519,975 senior secured term loan facility (Term Loan B Facility) by 50 basis points. Specifically, the interest rates for the Term SOFR Rate, Daily Simple SOFR loans, and alternate base rate loans have been adjusted accordingly. Additionally, prepayments of the Term Loan B Facility within the initial six months post the Closing Date will incur a 1.00 percent prepayment premium.

While Amendment No. 5 brings about a modification in interest rates, all other significant terms, conditions, and covenants under the Credit Agreement remain unaltered. The details of the agreement and its impact have been documented in the filing.

Chief Financial Officer Jimmi Sue Smith expressed satisfaction with the robust market demand for the Term Loan B. The repricing aligns with the company’s strategic goals to optimize its capital structure, reducing interest expenses without impacting leverage, covenants, or maturity dates. Wells Fargo Bank, National Association, is acting as the administrative agent for the Term Loan B.

Alongside the 8-K filing, Koppers issued a press release on December 17, 2024, providing further insight into Amendment No. 5. The press release emphasized the importance of this financial move in enhancing the company’s financial outlook and operational efficiency.

For full details on Amendment No. 5 and its implications, the complete text can be referenced in Exhibit 10.1 attached to the 8-K filing. The press release associated with this announcement can be found in Exhibit 99.1 of the same filing.

About Koppers
Koppers is headquartered in Pittsburgh, Pennsylvania, and is known for being an integrated global provider of treated wood products, wood treatment chemicals, and carbon compounds. The company serves various niche applications across a diverse range of end markets, including railroad, specialty chemical, utility, residential lumber, and more.

For additional information on Koppers Holdings Inc., please visit their official website at www.koppers.com. Any inquiries from the media can be directed to Ms. Jessica Franklin Black at [email protected] or by calling 412-227-2025. Inquiries from the investment community should be directed to Ms. Quynh McGuire at [email protected] or by calling 412-227-2049.

Please note that the forward-looking statements mentioned in this release are subject to certain risks and uncertainties, as detailed in the company’s communications and filings with the Securities and Exchange Commission.

Safe Harbor Statement
This news release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements involve various risks and uncertainties that could cause actual results to differ materially from anticipated outcomes.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Koppers’s 8K filing here.

About Koppers

Koppers Holdings Inc provides treated wood products, wood preservation chemicals, and carbon compounds in the United States, Australasia, Europe, and internationally. The company operates through Railroad and Utility Products and Services (RUPS), Performance Chemicals (PC), and Carbon Materials and Chemicals (CMC) segments.