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Tronox planning to issue debt 'as soon as practical,' CEO says
By Angela McDaniels
Tacoma, Wash., July 10 - Tronox Ltd. plans to issue debt, according to a Tuesday news release from the company.
"We expect to be significant purchasers of our shares for as long as and in amounts that we determine will be value-creating for our shareholders. We are committed to repurchasing up to $150 million of our shares prior to a debt issuance, which we intend to do as soon as practical," chairman and chief executive officer Tom Casey said in the release.
In a June 29 news release, Casey said the timing of the debt offering "must take into account credit market conditions and the time necessary for Exxaro to release its semiannual financial reports." Tronox agreed in May to acquire Exxaro Resources Ltd.'s mineral sands business.
A major portion of the proceeds of the debt offering will be returned to shareholders either as share repurchases or special dividends, Casey said. The board of directors has authorized the repurchase of up to 2.5 million class A shares in open-market transactions and declared a $1.25 quarterly dividend on the company's class A and B shares.
Tronox issued its Tuesday news release prior to the open in response to the 17.6% decline in its stock price on Monday. The stock closed at $105.33 (NYSE: TROX).
"Yesterday's decline in stock price occurred without the issuance of any company-specific news. We can only presume that Tronox's stock price was impacted by a forecast issued yesterday by another mineral sands producer," Casey said in the release.
The stock opened 6.3% higher at $112.00.
Tronox produces and markets titanium products. It is based in Stamford, Conn.
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