Tronox to get $450 million credit facility, $350 million bonds in spin-off from Kerr-McGee

By Sara Rosenberg

New York, Nov. 2 - Tronox Inc. plans to get a new $450 million senior secured credit facility (BB-) and issue $350 million in unsecured notes due 2012 in a private offering (B+) as part of its spin-off from Kerr-McGee Corp., according to an S-1/A recently filed with the Securities and Exchange Commission.

The facility consists of a $200 million six-year term loan and a $250 million five-year revolver.

Proceeds from the term loan and the notes offering will be distributed to Kerr-McGee.

Kerr-McGee is spinning off Tronox, its Oklahoma City-based chemical business, through an initial public offering of class A stock. The IPO is planned for the fourth quarter.

Following the IPO, Kerr-McGee will continue to hold an interest through ownership of Tronox's class B stock, with those shares expected to be distributed to stockholders through a spin-off or split-off during 2006.

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