S&P ups Koppers, debt; rates notes B+

S&P said it raised its corporate credit rating on Koppers Inc. and Koppers Holdings Inc. to B+ from B.

The outlook is stable.

At the same time, the agency assigned its B+ issue-level ratings and 4 recovery rating to the company's proposed $400 million unsecured notes. The 4 recovery rating indicates an expectation of average (higher end of the 30%-50% range) recovery in the event of a payment default.

S&P also raised its issue-level ratings on the company's existing senior secured debt, including its $300 million senior secured revolving credit facility, $300 million term loan A and $300 million ratably secured notes due 2019, to BB- from B+. The recovery rating remains 2, indicating expectations of substantial (higher end of the 70% to 90% range) recovery in the event of a payment default.

The agency expects that Koppers will repay the $300 million senior secured revolving credit facility, $300 million term loan A and $300 million ratably secured notes due in 2019 as part of this note issue coupled with the current bank negotiations to replace and extend its existing revolving credit facility and term loan. Once this transaction closes and the company repays the above issues, it will withdraw the issue-level ratings on the senior secured tranches.

"The upgrade reflects our expectation that the company will close its proposed unsecured notes and refinance its existing senior secured revolving credit facility and term loan," S&P credit analyst Mark Tarnecki said in a news release.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.