Moody’s assigns Koppers loan Ba3

Moody's Investors Service said it assigned a Ba3 rating to Koppers Inc.'s planned $400 million senior secured term loan B. Koppers Holdings Inc.'s Ba3 corporate family rating and Ba3-PD probability of default rating remain unchanged. The Ba3 rating on the senior secured first-lien revolving credit facility and B1 rating on the 6% senior unsecured notes due 2025 issued by Koppers Inc. also remain unchanged. The speculative grade liquidity rating of SGL-2 remains the same.

Proceeds from the term loan as well as borrowings from the revolver will be used to refinance the $500 million senior unsecured notes due 2025 as well as pay estimated financing fees and expenses.

Moody's said it plans to withdraw the rating on the senior unsecured notes once they are redeemed. The outlook is stable.

"The proposed term loan will extend Koppers' maturity profile and reduces near-term financing risk, but is partially offset by more floating rate debt in the capital structure at a time when rates are likely to head higher," said Domenick R. Fumai, a Moody's vice president and lead analyst for Koppers Holdings, in a press release.

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