PNC Bank and National City Bank kicked off syndication of a $175 million refinancing credit last Thursday for carbon compound and forest products producer Koppers. The deal includes a four-year, $100 million borrowing-base revolver and a four-year, $75 million "A" loan. Donald Davis, v.p. and cfo of Koppers, said the meeting was well attended, declining to discuss specific pricing details. But, he noted that the rates are comparable to Koppers' existing facility.
The company's existing credit prices in the LIBOR plus 13/4-21/ 4% range. Pittsburgh-based Koppers currently has a $275 million credit that includes a six-year, $140 million revolver and a $70 million "A" loan, which mature next November. There is also a seven-year, $65 million "B" loan scheduled to mature in November 2004. Davis said the company did not need a "B" loan this time around and was interested in establishing bank relationships through the pro rata deal.
UBS Warburg leads the existing facility with Mellon Bank, Davis said. But since origination in 1997, UBS and Mellon's business strategies have changed, Davis noted. He added that PNC and National City's middle-market supportive business is what Koppers wanted. Private investment firm Saratoga Partners controls the company and was affiliated with then-lead bank Warburg Dillon Read in 1997, he added, stating that the firms are no longer related. A PNC official and a UBS spokesman declined to comment. A National City banker did not return calls.