New Issue: Tronox prices $615 million eight-year notes at par to yield 6½%

By Paul A. Harris

Portland, Ore., March 27 – Tronox Inc. priced a $615 million issue of eight-year senior notes (B3/B-) at par to yield 6½% in a quick-to-market Tuesday trade, according to a market source.

The yield printed at the wide end of yield talk in the 6 3/8% area, which was also the initial guidance.

Citigroup Global Markets Inc. was the left bookrunner. BofA Merrill Lynch, Barclays, Credit Suisse Securities (USA) LLC, Goldman Sachs & Co., RBC Capital Markets LLC and Wells Fargo Securities LLC were the joint bookrunners.

The Stamford, Conn.-based mining and inorganic chemical company plans to use the proceeds to refinance its 7½% senior notes due 2022.

Issuer:	Tronox Inc.
Amount:	$615 million
Maturity:	April 15, 2026
Securities:	Senior notes
Left bookrunner:	Citigroup Global Markets Inc.
Joint bookrunners:	BofA Merrill Lynch, Barclays, Credit Suisse Securities (USA) LLC, Goldman Sachs & Co., RBC Capital Markets LLC, Wells Fargo Securities LLC
Co-manager:	HSBC Securities (USA) Inc.
Coupon:	6½%
Price:	Par
Yield:	6½%
Spread:	379 bps
First call:	Make-whole call at Treasuries plus 50 bps until April 15, 2021, then callable at 103.25
Equity clawback:	40% at 106.5 until April 15, 2021
Trade date:	March 27
Settlement date:	April 6
Ratings:	Moody's: B3
	S&P: B-
Distribution:	Rule 144A and Regulation S for life
Price talk:	6 3/8% area
Marketing:	Quick to market

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