Tronox sets price talk and timing for $400 million term loan

By Paul A. Harris

Portland, Ore., Feb. 23 – Tronox talked its $400 million seven-year first-lien term loan (Ba2) at SOFR plus 275 basis points to 300 bps at 99.5 with a 0.5% floor, according to a market source.

The loan comes with six months of soft call protection at a premium of 101%, and amortizes at an annual rate of 1%.

Commitments are due at noon ET on March 3.

Goldman Sachs is the left arranger. Joint arranger HSBC is the administrative agent. Credit Suisse, Citigroup, BofA, Barclays, BNP Paribas and Deutsche Bank are also joint arrangers.

Pro forma secured leverage is 1.4-times. Pro forma total leverage is 2.7-times. Pro forma total net leverage is 2.5-times.

The Stamford, Conn.-based chemical company plans to use the proceeds plus cash on hand to opportunistically refinance its senior secured notes due 2025.

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