KRONOS WORLDWIDE, INC. ANNOUNCES PRIVATE OFFERING OF AN ADDITIONAL €75 MILLION OF 9.50% SENIOR SECURED NOTES DUE 2029
Kronos Worldwide (NYSE: KRO) announced a private offering of €75 million in additional 9.50% Senior Secured Notes due 2029 through its subsidiary, Kronos International. These notes will supplement the existing €276,174,000 in notes issued on February 12, 2024. The new notes will have identical terms to the existing ones, except for the issue date and price. Kronos Worldwide and its domestic subsidiaries will fully guarantee the notes, which will be secured by first-priority interests in certain company assets.
The offering's completion depends on market conditions. Proceeds will be used to repay part of Kronos' global revolving credit facility with Wells Fargo, which was used for the recent acquisition of the remaining equity in Louisiana Pigment Company, a TiO2 production facility. This private placement is only available to qualified institutional buyers and non-U.S. persons in offshore transactions, in compliance with Securities Act regulations.
Kronos Worldwide (NYSE: KRO) ha annunciato un'offerta privata di €75 milioni in ulteriori obbligazioni senior garantite al 9,50% con scadenza nel 2029 attraverso la sua filiale, Kronos International. Queste obbligazioni integreranno il già esistente ammontare di €276.174.000 emesso il 12 febbraio 2024. Le nuove obbligazioni avranno termini identici a quelle esistenti, ad eccezione della data di emissione e del prezzo. Kronos Worldwide e le sue filiali domestiche garantiranno integralmente le obbligazioni, che saranno garantite da interessi di prima priorità su determinati beni dell'azienda.
Il completamento dell'offerta dipende dalle condizioni di mercato. I proventi saranno utilizzati per rimborsare una parte della linea di credito revolving globale di Kronos con Wells Fargo, che è stata utilizzata per l'acquisizione recente del rimanente capitale della Louisiana Pigment Company, un impianto di produzione di TiO2. Questa collocazione privata è disponibile solo per investitori istituzionali qualificati e per persone non statunitensi in transazioni offshore, in conformità con le normative del Securities Act.
Kronos Worldwide (NYSE: KRO) anunció una oferta privada de €75 millones en notas senior garantizadas adicionales al 9,50% con vencimiento en 2029 a través de su subsidiaria, Kronos International. Estas notas complementarán el monto existente de €276,174,000 emitido el 12 de febrero de 2024. Las nuevas notas tendrán condiciones idénticas a las actuales, excepto por la fecha de emisión y el precio. Kronos Worldwide y sus subsidiarias nacionales garantizarán totalmente las notas, que estarán respaldadas por intereses de primera prioridad en ciertos activos de la empresa.
La finalización de la oferta dependerá de las condiciones del mercado. Los fondos se utilizarán para reembolsar parte de la línea de crédito rotativa global de Kronos con Wells Fargo, que se utilizó para la reciente adquisición del capital restante en Louisiana Pigment Company, una planta de producción de TiO2. Este colocación privada está disponible solo para compradores institucionales calificados y personas no estadounidenses en transacciones en el extranjero, en cumplimiento con las regulaciones de la Ley de Valores.
크로노스 월드와이드(KRONOS: KRO)는 자회사인 크로노스 인터내셔널을 통해 2029년 만기 9.50% 고위험 선순위 채권 추가 발행을 위해 7500만 유로의 사모 판매를 발표했습니다. 이 채권은 2024년 2월 12일에 발행된 2억 7617만 4000 유로 규모의 기존 채권을 보충합니다. 새로운 채권은 발행일과 가격을 제외하고 기존의 조건과 동일합니다. 크로노스 월드와이드와 그 국내 자회사는 채권을 전적으로 보증합니다, 이 채권은 특정 회사 자산에 대한 우선 담보권으로 보호됩니다.
이 발행의 완료는 시장 상황에 따라 달라집니다. 수익금은 최근 루이지애나 색소 회사의 나머지 지분 인수에 사용된 웰스 파고(Wells Fargo)의 글로벌 회전 신용 시설의 일부를 상환하는 데 사용됩니다. 이 사모 발행자는 자격을 갖춘 기관 투자자와 비미국인을 위해 해외 거래에만 제공됩니다. 이는 증권법 규정에 따릅니다.
Kronos Worldwide (NYSE: KRO) a annoncé une offre privée de 75 millions d'euros en notes senior sécurisées supplémentaires à 9,50% arrivant à échéance en 2029 par l'intermédiaire de sa filiale, Kronos International. Ces notes complèteront le montant existant de 276.174.000 euros émis le 12 février 2024. Les nouvelles notes auront des conditions identiques à celles existantes, à l'exception de la date d'émission et du prix. Kronos Worldwide et ses filiales nationales garantiront intégralement les notes, qui seront sécurisées par des intérêts de premier rang sur certains actifs de la société.
La finalisation de l'offre dépend des conditions du marché. Les fonds seront utilisés pour rembourser une partie de la facilité de crédit revolving mondiale de Kronos auprès de Wells Fargo, qui a été utilisée pour l'acquisition récente du reste des actions de Louisiana Pigment Company, une installation de production de TiO2. Ce placement privé est disponible uniquement pour des acheteurs institutionnels qualifiés et des personnes non américaines dans des transactions offshore, en conformité avec les réglementations de la loi sur les valeurs mobilières.
Kronos Worldwide (NYSE: KRO) hat ein privates Angebot über 75 Millionen Euro an zusätzlichen 9,50% Senior Secured Notes mit Fälligkeit im Jahr 2029 über seine Tochtergesellschaft Kronos International angekündigt. Diese Anleihen sollen die bestehenden Anleihen im Umfang von 276.174.000 Euro ergänzen, die am 12. Februar 2024 ausgegeben wurden. Die neuen Anleihen werden identische Bedingungen wie die bestehenden haben, mit Ausnahme des Emissionsdatums und des Preises. Kronos Worldwide und seine inländischen Tochtergesellschaften werden die Anleihen vollständig garantieren, die durch vorrangige Interessen an bestimmten Unternehmensvermögen abgesichert sind.
Der Abschluss des Angebots hängt von den Marktbedingungen ab. Die Erlöse werden verwendet, um einen Teil der globalen revolvierenden Kreditfazilität von Kronos bei Wells Fargo zurückzuzahlen, die für die kürzliche Akquisition des verbleibenden Eigenkapitals der Louisiana Pigment Company, einer TiO2-Produktionseinrichtung, verwendet wurde. Diese Privatplatzierung ist nur für qualifizierte institutionelle Käufer und Nicht-US-Personen in Offshore-Transaktionen verfügbar, im Einklang mit den Vorschriften des Securities Act.
- Raising €75 million in additional capital through senior secured notes
- Proceeds to be used for repaying a portion of the global revolving credit facility
- Acquisition of remaining equity in Louisiana Pigment Company, expanding TiO2 production capacity
- Increased debt load with 9.50% interest rate on new notes
- Potential dilution of existing shareholders' value
- Offering to qualified institutional buyers and non-U.S. persons, excluding retail investors
Kronos Worldwide's decision to issue an additional €75 million of 9.50% Senior Secured Notes indicates a significant move towards capital restructuring and debt management. The high interest rate of 9.50% suggests that the company is leveraging high-cost borrowing, which could imply either a strategic bet on future growth or a response to current liquidity needs. For retail investors, this could mean increased financial risk due to the additional debt burden. However, if the proceeds are effectively used to enhance the company's assets and revenue-generating capabilities, the high interest obligations could be justified in the long term. Investors should weigh the potential for improved earnings against the risks of increased leverage.
The issuance of these additional notes is tied to the company's recent acquisition of the remaining equity interest in Louisiana Pigment Company. This strategic move aligns with Kronos Worldwide's efforts to consolidate its position in the TiO2 market. The chloride-process TiO2 production facility in Lake Charles is a significant asset and full ownership could streamline operations and potentially lead to cost efficiencies. For investors, the key takeaway is how quickly and efficiently Kronos can integrate this acquisition and realize the anticipated benefits. Short-term, there may be volatility due to the increased debt load, but long-term, this could lead to a stronger market position.
The legal structuring of this private offering under Regulation S and Rule 144A of the U.S. Securities Act of 1933 showcases Kronos Worldwide's adherence to regulatory frameworks. The private nature of the offering ensures that only qualified institutional buyers participate, minimizing the risk of non-compliance and potential legal challenges. For retail investors, the legal safeguards and guarantees provided by the company and its wholly-owned subsidiaries add a layer of security to this debt issuance. However, it’s important to note the high-priority security interests claimed on certain assets, which could limit flexibility in the company's future financial maneuverings.
Dallas, Texas, July 23, 2024 (GLOBE NEWSWIRE) -- Kronos Worldwide, Inc. (NYSE: KRO) (the “Company”) announced today that it is seeking to raise debt capital through a private offering of
The Notes will be fully and unconditionally guaranteed, jointly and severally, on a senior basis by the Company and each of its direct and indirect domestic, wholly-owned subsidiaries (other than the Issuer, the “Guarantors”), subject to certain exceptions and secured by first-priority security interests in certain assets of the Company and the Guarantors.
The completion of the offering depends on several factors, including market conditions. The Company intends to use the proceeds of the offering, after payment of fees and expenses, to repay a portion of its global revolving credit facility with Wells Fargo, on which it drew in connection with its recently announced acquisition of the remaining equity interest that it did not already own of Louisiana Pigment Company. L.P., a chloride-process TiO2 production facility located in Lake Charles, LA which the Company had previously operated as a
This press release shall not constitute an offer to sell, or the solicitation of an offer to buy any of the Notes nor shall there be any sales of the Notes in any jurisdiction in which such offer, solicitation or sale would be unlawful without registration or qualification under the securities laws of any such jurisdiction. This notice is being issued pursuant to and in accordance with Rule 135(c) under the Securities Act.
The Notes and related guarantees subject to the private placement have not been and will not be registered under the Securities Act, or any state securities laws, and will be offered only to persons reasonably believed to be qualified institutional buyers in reliance on Rule 144A under the Securities Act and in offshore transactions to non-U.S. persons (within the meaning of Regulation S) outside the U.S. that are not “retail investors” residing in a member state of the EEA or the UK. The Notes and related guarantees may not be offered or sold in the United States or to U.S. persons except pursuant to registration under or an exemption from the registration requirements of the Securities Act and applicable state securities laws.
About the Company
Kronos Worldwide, Inc., incorporated in Delaware in 1989, is a leading global producer and marketer of value-added titanium dioxide pigments, or TiO2, a base industrial product used in a wide range of applications. The Company, along with its distributors and agents, sells and provides technical services for its products to approximately 3,000 customers in 100 countries with the majority of its sales in Europe, North America and the Asia Pacific region. The Company believes it has developed considerable expertise and efficiency in the manufacture, sale, shipment and service of its products in domestic and international markets.
Forward-Looking Statements
The statements in this press release relating to matters that are not historical facts are forward-looking statements that represent management’s beliefs and assumptions based on currently available information. These forward-looking statements include, among others, statements about the potential outcome or effect of the notes offering or the use of proceeds therefrom. Although Kronos believes the expectations reflected in such forward-looking statements are reasonable, it cannot give any assurances that these expectations will prove to be correct. Such statements by their nature involve substantial risks and uncertainties that could significantly impact expected results, and actual future results could differ materially from those described in such forward-looking statements. The factors that could cause actual future results to differ materially include, but are not limited to, uncertainties relating to market conditions for corporate debt securities generally and for the securities of specialty chemical companies and for Kronos in particular. Such factors also include those identified in the Company’s most recent annual and quarterly reports filed with the Securities and Exchange Commission.
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This news release is for informational purposes only and is not an offer to sell, or the solicitation of an offer to buy, securities.
Investor Relations Contact
Bryan A. Hanley
Senior Vice President and Treasurer
Tel. 972-233-1700
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