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Koppers scraps tender offer for 7 7/8% notes after postponing new issue
By Susanna Moon
Chicago, Jan. 22 – Koppers Inc. said it terminated the tender offer for its 7 7/8% senior notes due 2019 after postponing its plans to issue senior notes.
The company’s planned private offering of notes has been postponed “due to perceived unfavorable market conditions,” according to a company press release.
As previously announced, the tender offer had been conditioned on the receipt of consents for a majority of the notes and the issue of new notes with proceeds of at least $300 million.
The tender offer would have ended at 12:01 a.m. ET on Feb. 12. The offer began Jan. 14.
The company, a subsidiary of Koppers Holdings Inc., also was soliciting consents to amend the notes in order to eliminate substantially all of the covenants and events of default and related provisions.
Holders who tendered before the consent date of 5 p.m. ET on Jan. 28 would have received $1,044.00 per $1,000 principal amount. The amount included a consent payment of $10.00 per $1,000 that only would have been paid to those who tendered by the consent deadline.
Those who tendered after the consent date would have received $1,034.00 per $1,000 principal amount.
Koppers also would have paid accrued interest up to but excluding the settlement date.
The company also intended to redeem any notes that remain outstanding after the tender. The call price is currently $1,039.38 per $1,000 principal amount.
Deutsche Bank Securities Inc. (855 287-1922 or 212 250-7527) was dealer manager and solicitation agent, and D.F. King & Co., Inc. (800 870-0653, banks and brokers 212 269-5550) was information agent.
Koppers is a Pittsburgh-based producer of carbon compounds, chemicals and treated wood products and services for the aluminum, railroad, specialty chemical, utility, rubber, concrete, steel, residential lumber and agriculture industries.
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