Koppers plans $100 million term loan for purchase of Cox business

By Sarah Lizee

Olympia, Wash., April 10 – Koppers Holdings Inc. plans on getting a new $100 million five-year secured term loan in connection with its acquisition of the industrial division of Cox Industries, Inc., according to a press release.

The company said wholly owned subsidiary Koppers Inc. signed an agreement to acquire Cox Industries for about $200 million in cash. Koppers is financing the acquisition through existing bank debt and expects to enter into the new secured term loan facility immediately after the closing of the transaction.

The new facility will be added to the company’s existing $600 million revolving credit facility.

The term loan will include quarterly amortization of $2.5 million, and the initial average borrowing rates are expected to be about 5%.

The committed financing will be provided by PNC Bank, NA.

Koppers is a Pittsburgh-based provider of treated wood products, wood treatment chemicals and carbon compounds. Cox Industries is an Orangeburg, S.C.-based producer of wood utility poles and marine construction products.

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