Moody's rates Tronox loan Ba2

Moody's Investors Service said it assigned Ba3 corporate family and probability of default ratings to Tronox Inc., along with a Ba2 (LGD 3, 39%) rating to its proposed $550 million term loan due 2017.

The term loan is being used to refinance the company's existing $425 million term loan and will incorporate terms allowing for the pending acquisition of the Exxaro Mineral Sands business that was announced in September 2011.

The outlook is stable.

The ratings reflect the company's strong operating performance, liquidity and credit metrics, Moody's said, along with an expectation that continued favorable titanium dioxide industry conditions will result in robust financial results during 2012 to 2013.

Industry conditions allowed Tronox to sell all of its production and raise prices multiple times during 2011, the agency said.

© 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.