The Chemours Company Announces Pricing of Private Offering of $600,000,000 of 8.000% Senior Notes Due 2033

Rhea-AI Summary

The Chemours Company (NYSE: CC) has announced the pricing of a $600 million private offering of senior notes due 2033. The notes will carry an 8.000% interest rate, payable semi-annually starting July 15, 2025. The company plans to use the proceeds to redeem all outstanding euro-denominated 4.000% senior notes of €440,810,000 due 2026, with the remainder allocated for general corporate purposes. The notes will be senior unsecured obligations guaranteed by certain Chemours subsidiaries. The offering is expected to close on November 27, 2024.

Positive

• Successful pricing of $600 million senior notes offering
• Strategic refinancing of existing euro-denominated debt

Negative

• Higher interest rate of 8.000% compared to existing 4.000% euro notes
• Increased interest expense will affect future cash flows

Insights

Fixed Income Analyst

This $600M senior notes offering at 8% interest reflects challenging market conditions, with a relatively high yield indicating increased borrowing costs. The refinancing of euro-denominated debt (€440.81M at 4%) with dollar-denominated notes suggests a strategic shift in debt structure, likely driven by currency risk management and interest rate considerations. While the higher interest rate will increase debt service costs, the extended maturity to 2033 provides long-term stability. The unsecured nature and subsidiary guarantees maintain financial flexibility. The timing aligns with broader market trends of companies securing longer-term financing amid uncertain rate environments. This refinancing may impact Chemours' interest expense and currency exposure profile, though the overall debt level remains relatively unchanged.

Treasury Management Specialist

The debt restructuring from euro to dollar denomination represents a significant shift in Chemours' currency risk management strategy. Converting from 4% euro notes to 8% dollar notes suggests management's view on long-term currency movements and interest rate differentials. While the higher coupon rate appears costly, it eliminates euro exposure and potential FX volatility risks. The 2033 maturity provides substantial runway for operational flexibility. The private placement approach through Rule 144A indicates a targeted institutional investor base, potentially offering more favorable terms than a public offering. The timing and structure suggest proactive liability management, though the increased interest burden warrants monitoring.

WILMINGTON, Del.--(BUSINESS WIRE)-- The Chemours Company (Chemours) (NYSE: CC) today announced the pricing of its previously announced private offering of $600,000,000 aggregate principal amount of new 8.000% senior notes due 2033 (the “Notes”). The Notes will bear interest at 8.000% per annum and mature on January 15, 2033. Interest on the Notes will be payable semi-annually on January 15 and July 15 of each year, beginning on July 15, 2025. The Notes will be senior unsecured obligations of Chemours and will be guaranteed by certain of its subsidiaries. The offering is expected to close on November 27, 2024, subject to customary closing conditions.

Chemours intends to use the net proceeds from the offering to redeem all of its outstanding euro-denominated 4.000% senior notes of €440,810,000 due 2026 and the remainder of the net proceeds for general corporate purposes.

The Notes and related guarantees were offered only to persons reasonably believed to be qualified institutional buyers in reliance on Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”), or outside the United States to non-U.S. persons in compliance with Regulation S under the Securities Act. This press release shall not constitute an offer to sell or the solicitation of an offer to buy the Notes and related guarantees.

The Notes and related guarantees have not been registered under the Securities Act, or the securities laws of any other jurisdiction, and may not be offered or sold in the United States without registration or an applicable exemption from registration requirements.

About The Chemours Company
The Chemours Company (NYSE: CC) is a global leader in providing industrial and specialty chemicals products for markets, including coatings, plastics, refrigeration and air conditioning, transportation, semiconductor and advanced electronics, general industrial, and oil and gas. Through our three businesses – Thermal & Specialized Solutions, Titanium Technologies, and Advanced Performance Materials – we deliver application expertise and chemistry-based innovations that solve customers’ biggest challenges. Our flagship products are sold under prominent brands such as Opteon™, Freon™, Ti-Pure™, Nafion™, Teflon™, Viton™, and Krytox™. Headquartered in Wilmington, Delaware and listed on the NYSE under the symbol CC, Chemours has approximately 6,100 employees and 28 manufacturing sites and serves approximately 2,700 customers in approximately 110 countries.

For more information, we invite you to visit chemours.com or follow us on X (formerly Twitter) @Chemours or LinkedIn.

Forward-Looking Statements
This press release contains forward-looking statements, within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, which involve risks and uncertainties. Forward-looking statements provide current expectations of future events based on certain assumptions and include any statement that does not directly relate to a historical or current fact. The words “believe,” “expect,” “will,” “anticipate,” “plan,” “estimate,” “target,” “project” and similar expressions, among others, generally identify “forward-looking statements,” which speak only as of the date such statements were made. These forward-looking statements address, among other things, the closing of the offering of Notes and Chemours’ intended use of the net proceeds therefrom, which are subject to substantial risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. These risks and uncertainties include, but are not limited to, the ability of Chemours to satisfy the conditions to closing the offering and general market conditions which may impact the closing of the offering. Forward-looking statements are based on certain assumptions and expectations of future events that may not be accurate or realized. Forward-looking statements also involve risks and uncertainties, many of which are beyond Chemours’ control. Additionally, there may be other risks and uncertainties that Chemours is unable to identify at this time or that Chemours does not currently expect to have a material impact on its business. Factors that could cause or contribute to these differences include whether the offering of Notes is completed and other risks, uncertainties and other factors discussed in Chemours’ filings with the U.S. Securities and Exchange Commission, including in Chemours’ Quarterly Report on Form 10-Q for the quarter ended September 30, 2024, and in Chemours’ Annual Report on Form 10-K for the year ended December 31, 2023. Chemours assumes no obligation to revise or update any forward-looking statement for any reason, except as required by law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241113646231/en/

INVESTORS

Brandon Ontjes

Vice President, Investor Relations

+1.302.773.3300

investor@chemours.com



Kurt Bonner

Manager, Investor Relations

+1.302.773.0026

investor@chemours.com



NEWS MEDIA

Cassie Olszewski

Media Relations & Reputation Leader

+1.302.219.7140

media@chemours.com

Source: The Chemours Company

FAQ

What is the interest rate and maturity date for Chemours (CC) new senior notes?

The new senior notes will bear an 8.000% interest rate and mature on January 15, 2033.

How much is Chemours (CC) raising in its new senior notes offering?

Chemours is raising $600,000,000 through its private offering of senior notes.

What will Chemours (CC) use the proceeds from the senior notes for?

Chemours will use the proceeds to redeem all outstanding euro-denominated 4.000% senior notes due 2026 and the remainder for general corporate purposes.

When will Chemours (CC) begin paying interest on the new senior notes?

Interest payments will begin on July 15, 2025, and will be paid semi-annually on January 15 and July 15.