Koppers Holdings Inc. successfully completed the repricing of its seven-year $495 million senior secured Term Loan B (TLB) on December 17, 2024. The TLB is due on April 10, 2030. This transaction reduces the interest rate margins applicable to the TLB by 50 basis points.
The interest rate margins were lowered from 3.00% to 2.50% with a floor of 50 basis points at adjusted Term SOFR Rate or adjusted Daily Simple SOFR. This repricing optimizes Koppers' capital structure by reducing interest expense. The company confirmed that this transaction did not alter its leverage, covenants, or maturity date.
Chief Financial Officer Jimmi Sue Smith stated that the strong market demand for the Term Loan B reflects confidence in Koppers' financial health. This move enhances the company's financial flexibility and is part of ongoing efforts to manage debt efficiently. The reduction in interest expense is expected to positively impact future profitability.
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