Koppers Announces Repricing of $495 Million Term Loan B

Koppers Holdings Inc. KOP, an integrated global manufacturer of treated wood products, wood treatment chemicals and carbon compounds, said that it has completed the repricing of its seven-year $495 million senior secured Term Loan B ("TLB") due April 10, 2030.This transaction lowers the TLB's interest rate margins by 50 basis points, from 3% with a 50 basis point floor to 2.5% with a 50 basis point floor at the adjusted Term SOFR Rate or adjusted Daily Simple SOFR.This deal is consistent with Koppers' continued efforts to optimize its capital structure, allowing it to lower interest expenses through repricing while maintaining its leverage, covenants, and maturity date. Wells Fargo Bank, National Association acts as the TLB's administrative agent. Wells Fargo Securities, LLC, PNC Capital Markets LLC, BofA Securities, Inc., Fifth Third Bank, National Association, Citizens Bank, N.A., and Truist Securities, Inc. are serving as joint lead arrangers and bookrunners for TLB.Koppers’ shares have lost 37.2% in the past year against the Zacks Chemicals Diversified industry’s 8.8% decline.Image Source: Zacks Investment ResearchKoppers anticipates sales for 2024 to be roughly $2.1 billion, factoring in the current competitive landscape, global economic conditions and the prevailing uncertainty associated with geopolitical and supply chain challenges. It expects adjusted EBITDA to be in the band of $270-$275 million for the year, including the acquisition of Brown Wood, which was completed on April 1, 2024. Koppers projects adjusted earnings per share to be $4.25-$4.45 for 2024. It expects capital expenditures of roughly $80 million for this year. It estimates operating cash flows of $100-$125 million for 2024, barring any impact from pension termination.Koppers Holdings Inc. Price and Consensus Koppers Holdings Inc. price-consensus-chart | Koppers Holdings Inc. QuoteKOP’s Rank & Key PicksKOP currently carries a Zacks Rank #3 (Hold).Better-ranked stocks in the basic materials space include Carpenter Technology Corporation CRS, New Gold Inc. NGD and CF Industries Inc. CF. Carpenter Technology currently carries a Zacks Rank #1 (Strong Buy). CRS beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 14.1%. The company's shares have soared 138.9% in the past year. You can see the complete list of today's Zacks #1 Rank stocks here.New Gold, a Zacks Rank #2 (Buy) stock, beat the consensus estimate in three of the trailing four quarters. In this time frame, it has delivered an earnings surprise of roughly 37.5%, on average. NGD’s shares have gained 65.8% over the past year. The Zacks Consensus Estimate for CF’s current-year earnings is pegged at $6.35. CF, a Zacks Rank #1 stock, beat the consensus estimate in two of the last four quarters while missed twice, with the average earnings surprise being 10.3%. CF has rallied around 7.8% in the past year. Zacks Naming Top 10 Stocks for 2025Want to be tipped off early to our 10 top picks for the entirety of 2025?History suggests their performance could be sensational.From 2012 (when our Director of Research Sheraz Mian assumed responsibility for the portfolio) through November, 2024, the Zacks Top 10 Stocks gained +2,112.6%, more than QUADRUPLING the S&P 500’s +475.6%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2025. Don’t miss your chance to get in on these stocks when they’re released on January 2.Be First to New Top 10 Stocks >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report CF Industries Holdings, Inc. (CF): Free Stock Analysis Report Carpenter Technology Corporation (CRS): Free Stock Analysis Report Koppers Holdings Inc. (KOP): Free Stock Analysis Report New Gold Inc. (NGD): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks