New Issue: Tronox prices $350 million seven-year notes at par to yield 9½%

By Paul A. Harris

St. Louis, Nov. 21 - Tronox Worldwide LLC priced a $350 million issue of seven-year senior notes (B1/B+) at par on Monday to yield 9½%, according to a syndicate source.

The yield came at the wide end of the 9¼% to 9½% price talk, which had been revised from 8½% to 8¾%.

Lehman Brothers and Credit Suisse First Boston were the bookrunners for the Rule 144A/Regulation S with registration rights issue. ABN Amro was the joint lead manager. RBS Greenwich Capital was the co-manager.

Proceeds will be used to fund the spinoff of the Oklahoma City-based chemical business from Kerr-McGee Corp. and to pay a dividend to Kerr-McGee.

Issuers:	Tronox Worldwide LLC and Tronox Finance Corp.
Amount:	$350 million
Maturity:	Dec. 1, 2012
Security description:	Senior notes
Bookrunners:	Lehman Brothers, Credit Suisse First Boston
Joint lead manager:	ABN Amro
Co-manager:	RBS Greenwich Capital
Coupon:	9½%
Price:	Par
Yield:	9½%
Spread:	507 basis points
Call feature:	Callable after Dec. 1, 2009 at 104.750, 102.375, par on and after Dec. 1, 2011
Equity clawback:	Until Dec. 1, 2008 for up to 35% at 109.50
Trade date:	Nov. 21
Settlement date:	Nov. 28
Ratings:	Moody's: B1
	Standard & Poor's: B+
Price talk:	9¼%-9½% (revised from 8½%-8¾%)

© 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.