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Koppers enters into $400 million revolver priced at Libor plus 250 bps
By Marisa Wong
Morgantown, W.Va., Feb. 22 – Koppers Holdings Inc. subsidiary Koppers Inc. entered into a credit agreement on Feb. 17 for a $400 million revolving credit facility, according to an 8-K filed Wednesday with the Securities and Exchange Commission.
PNC Capital Markets LLC; Wells Fargo Securities, LLC; Merrill Lynch, Pierce, Fenner & Smith Inc.; and Fifth Third Bank are the joint lead arrangers and joint bookrunners. Wells Fargo Bank, NA, Bank of America, NA and Fifth Third Bank are co-syndication agents, PNC Bank, NA is administrative agent, and Bank of Montreal, KeyBank NA, MUFG and Citizens Bank of Pennsylvania are co-documentation agents.
The facility includes an uncommitted accordion feature for increases to the borrowing commitments of up to $100 million total.
The revolver will mature on Feb. 17, 2022.
Borrowings will bear interest at Libor plus an applicable margin ranging from 200 basis points to 300 bps, depending on the company’s net senior secured leverage ratio. The initial spread is 250 bps.
There is also a commitment fee ranging from 25 bps to 37.5 bps, also based on the net senior secured leverage ratio. The fee is initially 25 bps.
The credit agreement contains maximum total secured leverage ratio and minimum fixed-charge coverage ratio covenants.
Borrowings are secured by a first priority lien on substantially all of the company’s assets.
Upon closing of the new credit agreement, Koppers terminated its existing credit agreement dated Aug. 15, 2014. The prior credit facility consisted of a $500 million revolver and a $300 million term loan.
Koppers is a Pittsburgh-based provider of treated wood products, wood treatment chemicals and carbon compounds.
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