Published on 9/14/2017 in the Prospect News High Yield Daily.
New Issue: Tronox prices $450 million eight-year notes at par to yield 5¾%
By Paul A. Harris
Portland, Ore., Sept. 14 – Tronox Finance plc priced a $450 million issue of eight-year senior notes (B3/B-) at par to yield 5¾% on Thursday, according to a syndicate source.
The yield printed at the tight end of yield talk in the 5 7/8% area.
Citigroup Global Markets Inc. was the lead bookrunner. BofA Merrill Lynch, Goldman Sachs & Co., Wells Fargo Securities LLC, Credit Suisse Securities (USA) LLC, RBC Capital Markets and Barclays were the joint bookrunners.
The Stamford, Conn.-based mining and inorganic chemical company plans to use the proceeds to refinance debt and to support its acquisition of titanium dioxide operations from Saudi Arabian chemical and mining concern Cristal.
| Issuer: | Tronox Finance plc
|
| Amount: | $450 million
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| Maturity: | Oct. 1, 2025
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| Securities: | Senior notes
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| Lead bookrunner: | Citigroup Global Markets Inc.
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| Joint bookrunners: | BofA Merrill Lynch, Goldman Sachs & Co., Wells Fargo Securities LLC, Credit Suisse Securities (USA) LLC, RBC Capital Markets, Barclays
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| Coupon: | 5¾%
|
| Price: | Par
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| Yield: | 5¾%
|
| Spread: | 365 bps
|
| First call: | Make-whole call at Treasuries plus 50 bps until Oct. 1, 2020, then callable at 104.313
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| Equity clawback: | 40% at 105.75 until Oct. 1, 2020
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| Trade date: | Sept. 14
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| Settlement date: | Sept. 22
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| Ratings: | Moody's: B3
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| S&P: B-
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| Distribution: | Rule 144A and Regulation S for life
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| Price talk: | 5 7/8% area
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| Marketing: | Roadshow
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