Koppers Inc., a wholly-owned subsidiary of Koppers Holdings Inc. (NYSE: KOP), announced today the successful completion of its previously announced private offering of $500 million aggregate principal amount of 6.00% Senior Notes due 2025 and the initial settlement of its previously announced cash tender offer for any and all of its 7.875% Senior Notes due 2019.
Koppers Chief Financial Officer Michael Zugay said, "We're very pleased to finalize these important financing transactions. The successful completion of these recent undertakings reduces our overall average borrowing costs, locks in a lower fixed interest rate in an uncertain rate environment and transfers previously secured debt to unsecured debt. Additionally, these transactions will strengthen our balance sheet as part of advancing our company's strategy to be the global leader in wood-based technologies."
Koppers Inc. accepted for purchase today an aggregate principal amount of $292,427,000 of 2019 Notes, representing approximately 97.5% of the 2019 Notes previously outstanding, in an initial settlement pursuant to the terms of the Tender Offer. Koppers Inc. also today called for redemption all 2019 Notes that remain outstanding following completion of the Tender Offer and concurrently satisfied and discharged its remaining obligations under the indenture governing the 2019 Notes. The redemption date for the 2019 Notes is February 24, 2017. Koppers Inc. used a portion of the net proceeds from the offering of the 2025 Notes to fund the initial settlement of the Tender Offer and the related redemption. The Tender Offer will expire at 11:59 p.m., New York City time, on February 2, 2017, unless extended.
Koppers Inc. used the remaining net proceeds from the offering of the 2025 Notes, together with additional borrowings under its existing revolving credit facility, to repay the outstanding balance of its existing term loan in full.
About Koppers
Koppers, with corporate headquarters in Pittsburgh, Pennsylvania, is an integrated global provider of treated wood products, wood treatment chemicals and carbon compounds. Our products and services are used in a variety of niche applications in a diverse range of end-markets, including the railroad, specialty chemical, utility, residential lumber, agriculture, aluminum, steel, rubber, and construction industries. Including our joint ventures, we serve our customers through a comprehensive global manufacturing and distribution network, with facilities located in North America, South America, Australasia, China and Europe. The stock of Koppers Holdings Inc. is publicly traded on the New York Stock Exchange under the symbol "KOP." For more information, visit us on the Web: www.koppers.com. Questions concerning investor relations should be directed to Michael J. Zugay at 412 227 2231 or Quynh McGuire at 412 227 2049.
