Walter W. Turner, President and CEO of Koppers, said, "We are pleased to see this transaction completed. The unique opportunity to monetize a non-core asset for $160 million significantly increases the company's liquidity; adding the estimated net cash proceeds after taxes of $90 million to the June 30, 2008 balance sheet on a pro forma basis increases availability under existing credit agreements and cash on hand to approximately $200 million, and significantly lowers our debt coverage ratios. We continue to see strength in our core end markets that are driven by recent projections of increased global aluminum production, infrastructure spending by the North American railroads, and other end markets. This increased liquidity is well timed to enhance our ability to take advantage of these growth opportunities, to potentially optimize our existing debt structure, or to provide the flexibility of returning cash to shareholders."
Mr. Turner continued, "We want to thank our employees at Monessen for their years of service to Koppers and for their efforts in facilitating the completion of this sale. We believe that the sale is in the best long-term interests of our Monessen employees as well as in the best interests of ArcelorMittal and Koppers."
UBS Securities, LLC acted as exclusive financial advisor to Koppers Holdings Inc. Reed Smith LLP acted as legal advisor to Koppers Holdings Inc.
About Koppers
Koppers, with corporate headquarters and a research center in Pittsburgh, Pennsylvania, is a global integrated producer of carbon compounds and treated wood products. Koppers operates facilities in the United States, United Kingdom, Denmark, Australia and China. The stock of Koppers Holdings Inc. is publicly traded on the New York Stock Exchange under the symbol "KOP." For more information, visit us on the Web: www.koppers.com. Questions concerning investor relations should be directed to Brian H. McCurrie at 412 227 2153 or Michael W. Snyder at 412 227 2131.
Safe Harbor Statement
This news release may contain forward-looking statements based on management's current expectations, estimates and projections. All statements that address expectations or projections about the future, including statements about the company's strategy for growth, product development, market position, expected expenditures and financial results are forward-looking statements. Some of the forward-looking statements may be identified by words like "expects," "anticipates," "plans," "intends," "projects," "indicates," and similar expressions. These statements are not guarantees of future performance and involve a number of risks, uncertainties and assumptions. Many factors, including those discussed more fully elsewhere in this release and in documents filed with the Securities and Exchange Commission by Koppers, particularly its latest annual report on Form 10-K and quarterly report on Form 10-Q, as well as others, could cause results to differ materially from those stated. These factors include, but are not limited to, changes in the laws, regulations, policies and economic conditions, including inflation, interest and foreign currency exchange rates, of countries in which the Company does business; competitive pressures; the loss of one or more key customer or supplier relationships; customer insolvencies; successful integration of structural changes, including restructuring plans, acquisitions, divestitures and alliances; cost and availability of raw materials; and other economic, business, competitive, regulatory and/or operational factors affecting the business of Koppers generally.
For Information:
Brian H. McCurrie
Vice President, Chief Financial Officer
412 227 2153
Email Contact
www.koppers.com
SOURCE: Koppers Holdings Inc.