Koppers Holdings Inc. (KOP Quick QuoteKOP - Free Report) has successfully concluded the upsizing and repricing of its seven-year $397 million senior secured Term Loan B (TLB), due Apr 10, 2030.

In addition to eliminating the 10 basis point (bp) credit spread adjustment from the TLB's pricing structure, this transaction lowers the interest rate margins applicable to the TLB by 50 bps, from 3.50% with a floor of 50 bps to 3.00% with a floor of 50 bps at adjusted Term SOFR Rate or adjusted Daily Simple SOFR. The TLB was also increased by $100 million, at par, bringing the principal balance to $497 million.

The TLB's proceeds are expected to be utilized for general corporate uses. Reducing borrowings under its revolving credit facility is the company's goal, including the recent borrowings used to finance the purchase of Brown Wood Preserving.

The TLB's administrative agent is Wells Fargo Bank, National Association. Joint lead arrangers and bookrunners for the TLB are Wells Fargo Securities, LLC, PNC Capital Markets LLC, BofA Securities, Inc., Fifth Third Bank, National Association, Citizens Bank, N.A., and Truist Securities, Inc.

Shares of Koppers, a worldwide provider of carbon compounds, wood treatment chemicals and treated wood products, have gained 62% over the past year against a 9.9% decline of its industry.

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Koppers, on its fourth-quarter call, noted that it remains focused on expanding and optimizing its business and making progress toward its long-term financial goals.

The company anticipates sales for 2024 to be roughly $2.25 billion. It also expects adjusted EBITDA to be approximately $275 million for the year. Koppers sees adjusted earnings per share to be $4.60-$4.80 for 2024.

The company also expects capital expenditures of roughly $100 million for this year.

Zacks Rank & Key Picks

Koppers currently carries a Zacks Rank #3 (Hold).

Better-ranked stocks in the basic materials space include Denison Mines Corp. (DNN Quick QuoteDNN - Free Report) , Carpenter Technology Corporation (CRS Quick QuoteCRS - Free Report) and Ecolab Inc. (ECL Quick QuoteECL - Free Report) .

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