By Paul A. Harris
Portland, Ore., Jan. 19 – Koppers Inc. priced an upsized $500 million issue of eight-year senior notes (B1/B+) at par to yield 6% on Thursday, according to a syndicate source.
The yield printed at the tight end of the 6% to 6¼% yield talk.
The notes offer was increased from $400 million. Concurrently the $200 million term loan A was eliminated from the company's debt refinancing package, and the revolver size was increased to $400 million from $300 million.
Wells Fargo Securities LLC is the left bookrunner for the notes. PNC Capital Markets, BofA Merrill Lynch and Fifth Third Bank are the joint bookrunners.
The Pittsburgh-based provider of treated wood products, wood treatment chemicals and carbon compounds plans to use the proceeds to repurchase all of its outstanding senior notes due 2019, with any excess proceeds to repay debt under the senior secured credit facilities or for general corporate purposes.
| Issuer: | Koppers Inc.
|
| Amount: | $500 million, increased from $400 million
|
| Maturity: | Feb. 15, 2025
|
| Securities: | Senior notes
|
| Left bookrunner: | Wells Fargo Securities LLC
|
| Joint bookrunners: | PNC Capital Markets LLC, BofA Merrill Lynch, Fifth Third Securities Inc.
|
| Co-managers: | MUFG, Citizens Capital Markets Inc., KeyBanc Capital Markets Inc., BMO Capital Markets Corp., Huntington Investment Co.
|
| Coupon: | 6%
|
| Price: | Par
|
| Yield: | 6%
|
| Spread: | 359 bps
|
| First call: | Feb. 15, 2020 at 104.5
|
| Equity clawback: | 35% at 106 until Feb. 15, 2020
|
| Trade date: | Jan. 19
|
| Settlement date: | Jan. 25
|
| Ratings: | Moody's: B1
|
| S&P: B+
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 6% to 6¼%
|
| Marketing: | Roadshow
|
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