Kronos cuts term B to $400 million, lifts spread to Libor plus 475 bps

By Sara Rosenberg

New York, June 7 - Kronos Worldwide Inc. downsized its senior secured term loan B to $400 million from $600 million and raised pricing to Libor plus 475 basis points from revised talk of Libor plus 425 bps and initial talk of Libor plus 375 bps, according to a market source.

Also, the original issue discount widened to 98½ from 99 and the tenor was shortened to six years from seven years, the source said.

The 1% Libor floor and 101 soft call protection for one year were left unchanged.

The loan has 5% amortization per year, which was increased earlier from 1%, and a net leverage test of 3½ times that was added earlier as well.

The company's $725 million credit facility also includes a $125 million ABL revolver that is not being syndicated.

Wells Fargo Securities LLC is the lead arranger and bookrunner on the deal.

Proceeds will be used to refinance existing debt, including the company's 6½% senior secured notes due April 2013.

Previously proceeds were also going to be used for general corporate purposes, which could have included the payment of a special dividend of up to $1 per share, but this was eliminated due to the term loan B downsizing, the source added.

Kronos is a Dallas-based producer of titanium dioxide products.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.