Koppers reprices $495 million term loan, cutting interest margin by 50 basis points
Koppers Inc., a subsidiary of Koppers Holdings Inc. (NYSE: KOP), signed Amendment No. 5 to its credit agreement on December 17, 2024, lowering the interest rate margins on its senior secured Term Loan B. The company says the change reduces interest expense without changing its leverage, covenants or maturity date, which matters to shareholders because it lowers the cost of its debt.
- Margins on the Term Loan B cut 50 basis points, from 3.00% to 2.50% for SOFR-based loans, with the 0.50% floor unchanged
- Alternate base rate loans move from 2.00% (1.50% floor) to 1.50%, equal to the floor
- Term Loan B principal is about $494.5 million and matures April 10, 2030
- Prepayments made within six months of December 17, 2024 carry a 1.00% premium