Tronox gets loan waiver regarding non-compliance with leverage ratio

By Sara Rosenberg

New York, July 2 - Tronox Inc. received a waiver through July 31 under its credit facility, waiving non-compliance with the total leverage ratio at June 30, according to an 8-K filed with the Securities and Exchange Commission Wednesday.

During the waiver period, the company can have a maximum of $178 million in revolver and letter-of-credit debt.

In addition, the company will seek an amendment to the credit facility to relax the financial maintenance covenants.

The waiver was obtained on June 27.

Lehman is the administrative agent on the deal.

The waiver was sought in response to the unexpected significant cost increases the company and industry experienced in the second quarter and the continued impact of the weak U.S. economy. In addition, the company's second-quarter financial results were impacted by production difficulties at its Uerdingen, Germany, and Kwinana, Western Australia, titanium dioxide facilities, and higher natural gas costs at Kwinana due to the shutdown of Apache's Varanus Island natural gas processing facility in Australia.

During the second quarter, the company completed the sale of two parcels of property, with net proceeds from the sales totaling about $12 million. Tronox was able to use $3.2 million of the net proceeds to reduce outstanding debt under its credit facility at June 30, and will use the remainder of the net proceeds to reduce outstanding debt during the first week of July.

Tronox is an Oklahoma City-based producer and marketer of titanium dioxide pigment.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.