By Paul A. Harris
Portland, Ore., March 10 – Tronox Ltd. priced a $600 million issue of seven-year senior notes (B3/BB-) at par to yield 7½% on Tuesday, according to a syndicate source.
The yield printed 25 basis points beyond the wide end of the 7% to 7¼% yield talk.
UBS Investment Bank was the lead left physical bookrunner. Credit Suisse Securities (USA) LLC, RBC Capital Markets, Citigroup Global Markets Inc., Goldman Sachs & Co. and MCS Capital Markets were also joint physical bookrunners.
The issuing entity will be Evolution Escrow Issuer LLC, a special purpose vehicle which is to be merged with and into Tronox Finance LLC.
The Stamford, Conn.-based producer and marketer of mineral sands, titanium dioxide pigment and electrolytic products plans to use the proceeds to finance the acquisition of FMC Corp.’s Alkali Chemicals division.
| Issuer: | Evolution Escrow Issuer LLC, to be merged with and into Tronox Finance LLC
|
| Amount: | $600 million
|
| Maturity: | March 15, 2022
|
| Securities: | Senior notes
|
| Left physical bookrunner: | UBS Investment Bank
|
| Joint physical bookrunners: | Credit Suisse Securities (USA) LLC, RBC Capital Markets, Citigroup Global Markets Inc., Goldman Sachs & Co., MCS Capital Markets
|
| Coupon: | 7½%
|
| Price: | Par
|
| Yield: | 7½%
|
| Spread: | 556 bps
|
| First call: | March 15, 2018 at 103.75
|
| Equity clawback: | 40% at 107.5 until March 15, 2018
|
| Trade date: | March 10
|
| Settlement date: | March 19
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: BB-
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 7% to 7¼%
|
| Marketing: | Roadshow
|
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