Koppers launches $499 million term loan B at SOFR plus 300 bps

By Sara Rosenberg

New York, March 11 – Koppers Inc. was scheduled to hold a lender call at 1 p.m. ET on Monday to launch a $499 million covenant-lite term loan B due April 10, 2030 that is talked at SOFR plus 300 basis points with a 0.5% floor, according to a market source.

Of the total term loan amount, $100 million is a fungible incremental tranche that will be used to add cash to the balance sheet and $399 million is a repricing of the company’s existing term loan B down from SOFR plus 350 bps with a 0.5% floor.

The incremental tranche is talked with an original issue discount of 99.75 to par, and the repricing is talked with a par issue price, the source said.

The term loan debt is getting 101 soft call protection for six months.

Amortization is 1% per annum.

Wells Fargo Securities LLC is the left lead arranger on the deal.

Commitments are due at noon ET on Thursday, the source added.

Koppers is a Pittsburgh-based provider of treated wood products, wood treatment chemicals and carbon compounds.

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