New Issue: Koppers upsizes 10-year notes to $320 million, yield 9 7/8%

By Paul A. Harris

St. Louis, Sept. 30 - Koppers Inc. priced an upsized $320 million of senior secured notes due Oct. 15, 2013 (B2/B) at par Tuesday to yield 9 7/8%, according to a syndicate source.

Price talk was for a yield of 10%-10¼%. The deal was increased from $300 million.

Credit Suisse First Boston was the bookrunner on the Rule 144A offering. The co-managers were Deutsche Bank Securities, UBS Investment Bank, PNC Capital Markets, NatCity Investments, Fleet Securities, Royal Bank of Scotland and Wachovia Securities.

The Pittsburgh-based producer of carbon compounds and treated wood products will use proceeds to redeem its 9 7/8% senior subordinated notes due 2007, repay part of its credit facility and pay a dividend to shareholders.

Issuer:	Koppers Inc.
Amount:	$320 million (increased from $300 million)
Maturity:	Oct. 15, 2013
Security description:	Senior secured notes
Bookrunner:	Credit Suisse First Boston
Coupon:	9 7/8%
Price:	Par
Yield:	9 7/8%
Spread:	593 basis points over 4¼% Treasury due August 2013
Call features:	Callable after Oct. 15, 2008 at 104.938, then 103.292, 101.646, declining to par on Oct. 15, 2011 and thereafter
Equity Clawback:	Until Oct. 15, 2006 at 109.875 for up to 35%
Settlement Date:	Oct. 15 (T+10)
Ratings:	Moody's: B2
	Standard & Poor's: B
Rule 144A Cusip:	500605AA8
Price talk:	10%-10¼%

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