Koppers Holdings Inc. 10-Q

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK Except for the following update of interest rate sensitivity subsequent to March 31, 2023, there are no material changes to the disclosure on this matter made in our Annual Report on Form 10-K for the year ended December 31, 2022. As discussed in Note 12 – “Debt” - "Subsequent Events", on April 10, 2023 we completed a Term Loan B financing in an aggregate principal amount of $400.0 million and used the proceeds from the Term Loan B, cash on hand and additional borrowings under our Credit Facility to redeem our 2025 Notes. As a result of these transactions, all of our debt subsequent to April 11, 2023 consists of variable rate debt. For variable rate debt, interest rate changes impact earnings and cash flows, assuming other factors are held constant. Assuming all of our debt consisted of variable rate debt as of March 31, 2023, a one percentage point increase in interest rates would have decreased earnings and cash flows by approximately $8.0 million over a twelve-month period, holding other variables constant inclusive of interest rate swap effects. During the first quarter of 2023, we entered into an interest rate swap agreement with an aggregate notional value of $100.0 million in anticipation of the issuance of the Term Loan B in April 2023. The interest rate swap effectively converts the variable rate to a fixed rate of 7.478 percent for that portion of the loan. The swap agreement expires in April 2027.