Koppers Holdings Inc.KOP
Koppers Holdings Inc. Debt Disclosure
Debt
| Weighted Average Interest Rate | Maturity | December 31, | ||||||||||||||||||||||||
| 2025 | 2024 | |||||||||||||||||||||||||
| (Dollars in millions) | ||||||||||||||||||||||||||
| Credit Facility | 5.65 | % | 2030 | $ | 448.0 | $ | 455.8 | |||||||||||||||||||
| Term Loan B | 6.22 | % | 2030 | 480.3 | 483.7 | |||||||||||||||||||||
| Total debt | 928.3 | 939.5 | ||||||||||||||||||||||||
| Less current maturities of long-term debt | 4.9 | 4.9 | ||||||||||||||||||||||||
| Less unamortized debt issuance costs | 9.1 | 8.7 | ||||||||||||||||||||||||
| Long-term debt | $ | 914.3 | $ | 925.9 | ||||||||||||||||||||||
Unamortized debt issuance costs presented above are included as a deduction from the carrying amount of long-term debt.
Credit Facility
We have a credit agreement (the Credit Facility) with a consortium of banks. The Credit Facility provides for an $800.0 million revolving credit facility, a $50.0 million swingline facility and provides for the ability to incur one or more uncommitted incremental revolving or term loan facilities in an aggregate amount of at least $730.0 million, subject to applicable financial covenants. The interest rate on the Credit Facility is variable and may be based on the SOFR, which is the applicable benchmark for current borrowings, or an alternative benchmark depending on the borrowing type.
In June 2025, we amended the Credit Facility to, among other things, (a) extend the maturity date of the Credit Facility to January 9, 2030 at the earliest; (b) modify the total net leverage ratio financial covenant by making the test 4.75:1 throughout the life of the Credit Facility; and (c) modify the interest rate margins applicable to the Credit Facility by
removing the 10 basis point credit spread adjustment and increasing the total net leverage ratio test used to determine the applicable interest rate margin.
Borrowings under the Credit Facility are secured by a first priority lien on substantially all of the assets (excluding real property and other customary assets) of Koppers Inc., Koppers Holdings Inc. and our material domestic subsidiaries. The Credit Facility contains certain covenants that may limit Koppers Inc. and its restricted subsidiaries from taking certain actions. These limitations include, among others, restrictions on additional indebtedness, liens, dividends, investments, acquisitions, certain distributions, asset sales, transactions with affiliates and modifications to material documents, including organizational documents. In addition, such covenants may give rise to events of default upon the failure by Koppers Inc. and its restricted subsidiaries to meet certain financial ratios.
As of December 31, 2025, we had $344.8 million of unused revolving credit availability for working capital purposes after restrictions from certain letter of credit commitments and other covenants. As of December 31, 2025, $7.2 million of commitments were utilized by outstanding letters of credit. For the three years ended December 31, 2025, we incurred commitment fees between 20 and 22 basis points on the undrawn portion of our credit facility to maintain credit availability.
Term Loan B
In April 2023, we issued a class of senior secured term loans under the Credit Facility (the Term Loan B) which was upsized in April 2024, resulting in $488.0 million of aggregate net proceeds, before debt financing costs. The interest rate on the Term Loan B is variable and is based on, at our option, adjusted Term SOFR Rate or adjusted Daily Simple SOFR. The interest rate margins applicable to adjusted Term SOFR Rate or adjusted Daily Simple SOFR loans are 2.50 percent with a floor of 0.50 percent. The principal balance of the Term Loan B is repayable in quarterly installments on the last business day of each quarterly period in an amount equal to 0.25 percent of the principal amount, with the balance due at maturity on April 10, 2030.
Interest Rate Swaps
See Note 5 – Derivative Financial Instruments for discussion of the interest rate swap agreements, which effectively convert the variable rate to a fixed rate for a portion of our variable rate debt.
Debt Maturities
At December 31, 2025, the aggregate debt maturities for the next five years are as follows:
| (Dollars in millions) | ||||||||
| 2026 | $ | 4.9 | ||||||
| 2027 | 4.9 | |||||||
| 2028 | 4.9 | |||||||
| 2029 | 4.9 | |||||||
| 2030 | 916.7 | |||||||
| Total principal debt | 936.3 | |||||||
| Less unamortized discount | 8.0 | |||||||
| Total debt | $ | 928.3 | ||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 26, 2026 | Showing above |
| 2024 | Feb 27, 2025 | |
| 2023 | Feb 28, 2024 | |
| 2022 | Feb 27, 2023 | |
| 2021 | Feb 23, 2022 | |
| 2020 | Feb 24, 2021 | |
| 2019 | Feb 27, 2020 | |
| 2018 | Mar 1, 2019 | |
| 2017 | Feb 27, 2018 | |
| 2016 | Feb 24, 2017 | |
| 2015 | Feb 29, 2016 | |
About Debt Disclosures
Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.
Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.