Tronox launches $1.3 billion term loan at Libor plus 375 bps

By Sara Rosenberg

New York, Feb. 28 - Tronox Ltd. launched its $1.3 billion senior secured term loan (Ba2/BBB-) on Thursday with price talk of Libor plus 375 basis points with a 1% Libor floor and an original issue discount of 99, according to a market source.

The loan has 101 soft call protection for one year, the source said.

Commitments are due on March 12.

Goldman Sachs & Co., UBS Securities LLC, Credit Suisse Securities (USA) LLC and RBC Capital Markets are the lead banks on the deal.

Proceeds will be used to refinance existing bank debt and for general corporate purposes and/or potential strategic alternatives.

Following completion of this financing and prepayment of its existing loan in full, Tronox will have about $1.3 billion in cash on its balance sheet.

Closing is expected by the end of this quarter.

Tronox is a producer and marketer of titanium bearing mineral sands and titanium dioxide pigment.

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