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Wells Fargo Agents $400MM Term Loan B for Koppers

April 14, 2023, 07:49 AM
Filed Under: Wood Products

Koppers Holdings, an integrated global provider of treated wood products, wood treatment chemicals, and carbon compounds, closed a 7-year $400 million senior secured Term Loan B (TLB), which will bear interest, at the company's option, at adjusted Term SOFR or adjusted Daily Simple SOFR, in each case plus 4.00% with a floor of 50bps.

Proceeds from the TLB, along with cash on hand and borrowing under its revolving credit facility, were used to redeem the company's outstanding $500 million 6.00% Senior Unsecured Notes that were due in 2025 and to pay fees and expenses incurred in connection with the TLB and the redemption of the Notes.

Wells Fargo Bank is acting as administrative agent for the TLB. 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 TLB.

Commenting on the transaction, Chief Financial Officer Jimmi Sue Smith said, "The success of this refinancing reflects the ongoing focus on enhancing our balance sheet flexibility, which is one of the company's core strategic pillars. Consistent with our capital structure priorities, we are reducing risk and gaining flexibility by extending the maturity date for our debt profile. While the TLB has a floating rate, we intend to enter into hedging instruments over the next several months to achieve a balanced mix of fixed and floating rates and to help protect against interest rate exposure."

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