Moody’s gives B3 to Tronox notes

Moody's Investors Service said it affirmed the B1 corporate family rating of Tronox Ltd. and assigned a B3 rating to the new $615 million eight-year senior unsecured notes issued by Tronox Inc.

Proceeds are expected to be used to repay the existing $600 million 7˝% senior notes due 2022 issued by Tronox Finance LLC.

The outlook was changed to positive from stable.

"The positive outlook reflects the improvement in metrics, both on a stand-alone basis and pro forma for the acquisition of Cristal, from the upcycle in TiO2 and the expectation that metrics improve further as the outlook for TiO2 remains favorable and as free cash flow is used to reduce debt," Moody's vice president,, senior credit officer Joseph Princiotta said in a news release.

"Moreover, the current financing, combined with the financings completed in October 2017, have improved the capital structure by pushing out maturities and lowering interest expense."

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