Koppers gets early tenders for 97.5% of 7 7/8% notes, enough to amend

By Susanna Moon

Chicago, Jan. 20 – Koppers Holdings Inc. said investors had tendered $292,427,000, or 97.5%, of the 7 7/8% senior notes due 2019 issued by wholly owned subsidiary Koppers Inc. as of the early deadline of 5 p.m. ET on Jan. 19.

As a result, Koppers secured the needed consents to approve the proposed amendments to the notes indenture, according to a company notice.

As announced Jan. 5, Koppers Inc. is tendering for its 7 7/8% notes at a total purchase price of $1,017.90 per $1,000 principal amount of notes tendered by the consent deadline.

Holders who tender after the consent date will receive $987.90 per $1,000 principal amount.

The company also will pay accrued interest up to but excluding the settlement date, which is expected to be Jan. 25 for early tendered notes.

The tender offer will continue until 12:01 a.m. ET on Feb. 2.

The company also is soliciting consents to amend notes to eliminate substantially all of the covenants and certain events of default and related provisions.

Holders who tender their notes will be deemed to consent to the proposed amendments, and holders may not deliver consents without tendering their notes in the offer.

Koppers plans to call any notes remaining after the tender at a redemption price of $1,013.13 per $1,000 principal amount, according to a previous company announcement.

The tender is contingent on Koppers obtaining consents for at least a majority of the senior notes and the company having closed one or more offerings of debt securities with enough proceeds to fund the offer, both of which have now been met.

Koppers priced an upsized $500 million issue of eight-year senior notes at par to yield 6% on Jan. 19.

The dealer manager and solicitation agent is Wells Fargo Securities, LLC (866 309-6316 or 704 410-4760). The information agent is D.F. King & Co., Inc. (888 644-6071 or 212 269-5550).

Koppers is a Pittsburgh-based integrated producer of carbon compounds, chemicals, and treated wood products and services.

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