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Koppers Holdings Expands Credit Facility Maturity

Koppers Holdings Inc., a leading provider in treated wood products and carbon compounds, has announced a strategic extension of its revolving credit facility's maturity date to 2030. This significant move enhances the company’s financial landscape, allowing for improved flexibility as it navigates through its upcoming projects and financial commitments.

Details of the Extension

On June 18, 2025, Koppers revealed to the public that it has effectively extended the maturity of its $800 million revolving credit facility. The new maturity date will fall on June 17, 2030, or ninety-one days prior to the maturity date of its secured term loan facility, whichever comes first.

The recent modifications do not stop at just extending the maturity. Koppers has also revised the total net leverage ratio financial covenant, shifting away from the prior step-down of 4.50:1.00 that was slated for the fiscal quarter ending September 30, 2026. The new test will now maintain a standard of 4.75:1.00 throughout the duration of this credit agreement. In addition, changes to interest rate margins were instituted as well, which involved the removal of the previous 10 basis points credit spread related to some SOFR loans and increased the leverage ratio test to define applicable interest rates across all loans.

Significance of the Move

Koppers Chief Financial Officer, Jimmi Sue Smith, expressed enthusiasm over the successful extension, noting that it significantly bolsters the company’s capital position and reduces overall borrowing costs. Smith stated, “We are very pleased with this extension of our revolving credit facility, which strengthens our capital position, enhances financial flexibility, and lowers our borrowing costs.” This renewed agreement further cements the trust between Koppers and its banking partners, which Smith indicates plays a crucial role in the firm's strategic advancement.

PNC Bank has been appointed as the revolving administrative agent and swingline loan lender throughout this transaction. Meanwhile, a consortium of financial institutions, including PNC Capital Markets, Wells Fargo Securities, Bank of America Securities, Citizens Bank, Fifth Third Bank, and Truist Securities, has been assigned as joint lead arrangers and bookrunners for the facility.

About Koppers Holdings Inc.

Koppers Holdings Inc. (NYSE: KOP) integrates a wide range of treated wood products, wood preservation technologies, and carbon compounds. With a dedicated workforce of 2,100 people, Koppers plays a pivotal role in the sustainability of infrastructure globally. The company is engaged in the production of important components such as railroad crossties, utility poles, and wooden structures, all while striving for innovation and safety in its operations.

The company's mission revolves around safeguarding essential components of modern infrastructure and ensuring the longevity of their solutions for future generations, as stated in their corporate tagline: "Protecting What Matters, Preserving The Future."

Looking Ahead

As Koppers continues its journey towards extensive growth and sustainability, this financial maneuver is not merely about extending timeframes. Instead, it highlights Koppers’ commitment to its stakeholders and its vision for responsibly managing resources while fulfilling market demands.

Conclusion

In summary, Koppers Holdings Inc.'s proactive measures in extending its revolving credit facility exemplify strategic financial planning aimed at reinforcing stability and flexibility, ultimately allowing the company to pursue its ambitions with confidence. Market watchers and stakeholders will be keen to observe how Koppers leverages this opportunity for continued growth and innovation in the years to come.