Tronox launches $2.15 billion term loan B at Libor plus 325-350 bps

By Sara Rosenberg

New York, Sept. 7 – Tronox Finance LLC launched on Thursday its $2.15 billion seven-year covenant-light term loan B (BB-) with price talk of Libor plus 325 basis points to 350 bps with a 0% Libor floor and an original issue discount of 99.5, according to an informed source.

The term loan has 101 soft call protection for six months, amortization of 1% per annum and 50 bps MFN for 12 months, the company disclosed in an 8-K filed with the Securities and Exchange Commission.

Bank of America Merrill Lynch, Citigroup Global Markets Inc., Goldman Sachs Bank USA, Wells Fargo Securities LLC, Credit Suisse Securities (USA) LLC, RBC Capital Markets and Barclays are the joint lead arrangers and bookrunners on the deal.

Commitments are due on Sept. 13.

Closing is targeted for Sept. 22.

Along with the new term loan, the company is looking to upsize its ABL facility to $550 million.

Proceeds will be used to help refinance existing debt and fund the acquisition of the titanium dioxide assets of Cristal.

Other funds for the transaction will come from the issuance of $450 million in senior unsecured notes.

Pro forma secured net leverage will be 2.9 times and total net leverage will be 4.3 times based on pro forma June 30 unaudited adjusted EBITDA of $731 million.

Tronox is a Stamford, Conn.-based mining and inorganic chemical company.

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