By Paul A. Harris
Portland, Ore., April 24 – Tronox Inc. priced an upsized $500 million issue of five-year senior secured notes (Ba3/B+) at par to yield 6½% on Friday, according to market sources.
Credit Suisse Securities (USA) LLC was the left lead bookrunner. Joint bookrunners were HSBC Securities (USA) Inc., Citigroup Global Markets Inc., Jefferies LLC, Goldman Sachs & Co. LLC, Barclays, BofA Securities Inc. and RBC Capital Markets LLC.
The issue size increased from $400 million.
The yield printed in the middle of yield talk in the 6½% area and at the tight end of initial guidance of 6½% to 6¾%.
Timing was moved back. The offer was originally announced as a Thursday drive-by.
The Stamford, Conn.-based chemical company plans to use the proceeds for general corporate purposes, including working capital, capital expenditures, debt repayment, strategic investments and transactions, and other business opportunities.
| Issuer: | Tronox Inc.
|
| Amount: | $500 million, increased from $400 million
|
| Maturity: | May 1, 2025
|
| Securities: | Senior secured notes
|
| Left lead bookrunner: | Credit Suisse Securities (USA) LLC
|
| Joint bookrunners: | HSBC Securities (USA) Inc., Citigroup Global Markets Inc., Jefferies LLC, Goldman Sachs & Co. LLC, Barclays, BofA Securities Inc. and RBC Capital Markets LLC
|
| Coupon: | 6½%
|
| Price: | Par
|
| Yield: | 6½%
|
| Spread: | 610.4 bps
|
| First call: | May 1, 2022 at 103.25
|
| Equity clawback: | 40% at 106.5 until May 1, 2022
|
| Trade date: | April 24
|
| Settlement date: | May 1
|
| Ratings: | Moody's: Ba3
|
| S&P: B+
|
| Distribution: | Rule 144A and Regulation S
|
| Price talk: | 6½% area
|
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