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Koppers reduces revolver to $300 million, revises pricing, covenants
By Tali Rackner
Norfolk, Va., April 14 – Koppers Inc. amended its credit agreement on April 8 to reduce the maximum revolving credit principal commitment to $300 million from $500 million and revise terms, according to an 8-K filing with the Securities and Exchange Commission.
PNC Bank NA is the administrative agent.
The amendment edits the existing pricing grid to provide for additional pricing tiers in the event that the total secured leverage ratio exceeds 3.5 times at the end of any fiscal quarter through Sept. 30 or 4 times at the end of any fiscal quarter ending on Dec. 31, 2016 or thereafter.
Interest is now equal to Libor plus 225 basis points to 350 bps. The commitment fee ranges from 20 bps to 37.5 bps, and the letter-of-credit fee is 225 bps to 350 bps.
In addition, the maximum total secured leverage ratio was adjusted to 5.25 times at the end of the fiscal period from April 8 through Sept. 30; 5 times at the end of the fiscal period from Dec. 31, 2016 through Sept. 30, 2017; 4.5 times at the end of the fiscal period from Dec. 31, 2017 through Sept. 30, 2018; and 4 times at the end of the fiscal period ending on Dec.31, 2018 and thereafter.
Furthermore, the amendment allows Koppers to complete certain reorganizations and other activities related to tax planning and tax reorganization and excludes from the calculation of fixed charges capital expenditures for the reorganization of Koppers’ carbon materials and chemicals business in amounts of up to $9.5 million for charges incurred prior to Dec. 31, 2015 and up to $35 million for charges incurred on or after Jan. 1, 2016.
Koppers is a Pittsburgh-based producer of carbon compounds and treated wood products.
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