Koppers extends $800 million revolving credit facility to 2030

PITTSBURGH - Koppers Holdings Inc. (NYSE: KOP), a specialty chemicals company with a market capitalization of approximately $633 million, has extended the maturity date of its $800 million revolving credit facility to June 17, 2030, the company announced Wednesday.

The transaction modifies the total net leverage ratio financial covenant by removing a previously planned reduction to 4.50:1.00 for the fiscal quarter ending September 30, 2026, maintaining it at 4.75:1.00 throughout the agreement. The deal also adjusts interest rate margins by removing a 10 basis point credit spread adjustment applicable to certain SOFR loans. According to InvestingPro data, the company maintains a healthy current ratio of 2.64, indicating strong liquidity to meet its short-term obligations.

"This extension strengthens our capital position, enhances financial flexibility, and lowers our borrowing costs," said Chief Financial Officer Jimmi Sue Smith in the press release statement.

PNC Bank, National Association, is serving as revolving administrative agent and swingline loan lender for the facility. Several financial institutions are acting as joint lead arrangers and bookrunners, including PNC Capital Markets LLC, Wells Fargo Securities, LLC, BofA Securities, Inc., Citizens Bank, N.A., Fifth Third Bank, National Association and Truist Securities, Inc.

Koppers, headquartered in Pittsburgh, provides treated wood products, wood preservation technologies, and carbon compounds. The company employs approximately 2,100 people globally and generates annual revenues of over $2 billion. InvestingPro analysis suggests the stock is currently undervalued, with analysts setting price targets significantly above current trading levels. For detailed valuation metrics and more insights, check out the comprehensive Pro Research Report, available with an InvestingPro subscription.

The extension comes as part of the company’s ongoing financial management strategy. All other material terms, conditions and covenants of the revolving facility remain unchanged, according to the announcement. The company has demonstrated solid financial performance with an EBITDA of $257.3 million in the last twelve months, maintaining a "GOOD" overall financial health score according to InvestingPro metrics.

In other recent news, Koppers Holdings Inc. reported its Q1 2025 earnings, revealing a notable performance with earnings per share (EPS) of $0.71, which exceeded analyst expectations of $0.56. However, the company’s revenue fell short, reaching $456.5 million compared to the anticipated $488 million. Despite the revenue miss, the company’s adjusted EBITDA improved to $55.5 million from $51.5 million the previous year, reflecting strategic cost management and operational efficiencies. Koppers continues to project consolidated sales of $2.0 billion to $2.2 billion for 2025, with an adjusted EBITDA forecast of $280 million. The company also maintains its adjusted EPS forecast of $4.75 for the year.

In addition to financial updates, Koppers announced the appointment of James A. Sullivan as President and Chief Transformation Officer, effective June 1, 2025. Sullivan will lead the company’s enterprise-wide transformation initiative, known as Catalyst, aiming to enhance performance across the organization. This appointment is part of Koppers’ broader strategy to improve its margin and cash flow profile. Analysts have noted the company’s resilience in a challenging market environment, with firms like B. Riley Securities and Barrington Research engaging in discussions about the company’s strategic initiatives and market positioning.

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