Koppers (KOP) Announces Completion of Term Loan B Repricing
Koppers Holdings Inc. KOP recently announced that it has successfully repriced its seven-year $399 million senior secured Term Loan B (TLB), which is due on Apr 10, 2030.
The repricing is leverage-neutral and lowers the interest rate margins applicable to the TLB by 50 basis points (bps), including for adjusted Term SOFR Rate or adjusted Daily Simple SOFR loans from 4.00% with a floor of 50 bps to 3.50% with a floor of 50 bps.
This transaction is in line with the company's history of optimizing its capital structure, which it achieved by lowering interest expenses through repricing while keeping its leverage, covenants and maturity date the same.
Shares of Koppers have gained 75.1% over the past year compared with a 8.5% rise of its industry.
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Koppers, on its second-quarter call, noted that it remains focused on expanding and optimizing its business and making progress toward its long-term financial goals.
The company anticipated sales for 2023 to be roughly $2.1 billion. It also expects adjusted EBITDA to be around $250 million for the year. Koppers sees adjusted earnings per share for 2023 to be around $4.40.
The company expects capital expenditures of $110-$120 million for this year.
Koppers Holdings Inc. Price and Consensus
Koppers Holdings Inc. price-consensus-chart | Koppers Holdings Inc. Quote
Zacks Rank & Other Key Picks
Koppers currently carries a Zacks Rank #2 (Buy).
Other top-ranked stocks in the basic materials space include Commercial Metals Company CMC, Carpenter Technology Corporation CRS and The Andersons Inc. ANDE.
Commercial Metals carries a Zacks Rank #1 (Strong Buy). CMC delivered a trailing four-quarter earnings surprise of roughly 21.7%, on average. The stock is up around 3.9% in a year. You can see the complete list of today’s Zacks #1 Rank stocks here.
Carpenter Technology currently carries a Zacks Rank #2. The stock has rallied roughly 105.3% in the past year. CRS beat the Zacks Consensus Estimate in three of the last four quarters while meeting in one. It delivered a trailing four-quarter earnings surprise of 9.8%, on average.
Andersons currently carries a Zacks Rank #2. The stock has gained roughly 58.9% in the past year. ANDE beat the Zacks Consensus Estimate in each of the last four quarters. It delivered a trailing four-quarter earnings surprise of 64.4%, on average.
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