Tronox receives final approval of $425 million replacement DIP loan

By Caroline Salls

Pittsburgh, Jan. 15 - Tronox Inc. was granted final court approval of its $425 million replacement debtor-in-possession financing facility with a syndicate of lenders led by Goldman Sachs Lending Partners LLC, according to a Friday filing with the U.S. Bankruptcy Court for the Southern District of New York.

The replacement DIP facility will repay Tronox's currently outstanding secured debt, including the current DIP facility, in its entirety.

The replacement DIP facility will also convert into exit financing on the plan effective date.

According to court documents, the DIP facility is comprised of a $335 million tranche B-1 term loan and a $90 million tranche B-2 term loan.

The facility will mature on the earliest of six months from closing, subject to a six-month extension option and a further extension to the third anniversary of the exit facility conversion date.

Interest on Base rate loans will be the Base rate plus 600 basis points, with a 3% Base rate floor, and interest on Eurodollar loans will be Eurodollar plus 700 bps with a 2% floor.

Tronox, an Oklahoma City-based producer and marketer of titanium dioxide pigment, filed for bankruptcy on Jan. 12, 2009. Its Chapter 11 case number is 09-10156.

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