KRONOS WORLDWIDE, INC. PRICES PRIVATE OFFERING OF AN ADDITIONAL €75 MILLION OF 9.50% SENIOR SECURED NOTES DUE 2029
Kronos Worldwide, Inc. (NYSE: KRO) announced that its subsidiary, Kronos International, Inc. (KII), will issue an additional €75 million of 9.50% Senior Secured Notes due 2029 through a private placement. These notes will be added to the existing €276,174,000 of notes issued in February 2024. Priced at a premium of 107.50%, the offering is expected to yield approximately €80,625,000 (about $87,500,000) before fees.
The proceeds will be used to repay a portion of the company's global revolving credit facility with Wells Fargo, which was used for the recent acquisition of the remaining equity interest in Louisiana Pigment Company, L.P. The notes will be guaranteed by Kronos Worldwide and its domestic subsidiaries, secured by first-priority interests in certain assets. The offering, oversubscribed and to qualified institutional buyers, is expected to close around July 30, 2024.
Kronos Worldwide, Inc. (NYSE: KRO) ha annunciato che la sua sussidiaria, Kronos International, Inc. (KII), emetterà ulteriori 75 milioni di euro di Note Senior Garantite al 9,50% con scadenza nel 2029 tramite un collocamento privato. Queste note si aggiungeranno ai 276.174.000 euro di note emesse a febbraio 2024. Valutate a un premio del 107,50%, l'offerta dovrebbe generare circa 80.625.000 euro (circa 87.500.000 dollari) prima delle spese.
I proventi saranno utilizzati per ripagare una parte della linea di credito rotativa globale dell'azienda con Wells Fargo, utilizzata per l'acquisizione recente della restante partecipazione azionaria in Louisiana Pigment Company, L.P. Le note saranno garantite da Kronos Worldwide e dalle sue sussidiarie nazionali, assicurate da diritti di primo piano su determinati attivi. L'offerta, in eccesso di domande e destinata a investitori istituzionali qualificati, dovrebbe concludersi intorno al 30 luglio 2024.
Kronos Worldwide, Inc. (NYSE: KRO) anunció que su subsidiaria, Kronos International, Inc. (KII), emitirá adicionales 75 millones de euros en Notas Senior Garantizadas de 9.50% con vencimiento en 2029 a través de una colocación privada. Estas notas se sumarán a los 276.174.000 euros de notas emitidas en febrero de 2024. Con un premium del 107.50%, se espera que la oferta genere aproximadamente 80.625.000 euros (alrededor de 87.500.000 dólares) antes de tarifas.
Los ingresos se utilizarán para pagar una parte de la línea de crédito rotativa global de la empresa con Wells Fargo, que se usó para la reciente adquisición del interés de capital restante en Louisiana Pigment Company, L.P. Las notas estarán garantizadas por Kronos Worldwide y sus subsidiarias nacionales, aseguradas por derechos de primer orden sobre ciertos activos. Se espera que la oferta, que ha sido sobredemandada y dirigida a compradores institucionales calificados, se cierre alrededor del 30 de julio de 2024.
Kronos Worldwide, Inc. (NYSE: KRO)는 자회사인 Kronos International, Inc. (KII)가 개인 배치를 통해 7천5백만 유로의 9.50% 만기 보장 채권을 추가로 발행할 것이라고 발표했습니다. 이번 채권은 2024년 2월에 발행된 2억 7617만 4천 유로의 기존 채권에 추가될 것입니다. 107.50%의 프리미엄으로 가격이 책정된 이번 제안은 수수료 제외 시 약 8천625만 유로 (약 8천750만 달러)의 수익을 올릴 것으로 예상됩니다.
이 자금은 Wells Fargo와의 글로벌 회전신용 시설의 일부분을 상환하는 데 사용될 예정이며, 이는 루이지애나 피그먼트 컴퍼니, L.P.의 나머지 지분을 인수하는 데 사용되었습니다. 채권은 Kronos Worldwide 및 그 국내 자회사가 보증하며, 특정 자산에 대해 우선적 권리로 보장됩니다. 이번 제안은 수요가 과다하여 자격 있는 기관 투자자에게 제공되며, 2024년 7월 30일경 마감될 것으로 예상됩니다.
Kronos Worldwide, Inc. (NYSE: KRO) a annoncé que sa filiale, Kronos International, Inc. (KII), émettra un montant supplémentaire de 75 millions d'euros en Obligations Senior Garanties à 9,50 % arrivant à échéance en 2029 à travers un placement privé. Ces obligations s'ajouteront aux 276.174.000 euros d'obligations émises en février 2024. Évaluée à un premium de 107,50 %, l'offre devrait rapporter environ 80.625.000 euros (environ 87.500.000 dollars) avant frais.
Les recettes seront utilisées pour rembourser une partie de la ligne de crédit renouvelable mondiale de l'entreprise auprès de Wells Fargo, utilisée pour l'acquisition récente de la participation restante dans la Louisiana Pigment Company, L.P. Les obligations seront garanties par Kronos Worldwide et ses filiales nationales, sécurisées par des droits prioritaires sur certains actifs. L'offre, qui a suscité un grand intérêt et est destinée à des investisseurs institutionnels qualifiés, devrait se clôturer autour du 30 juillet 2024.
Kronos Worldwide, Inc. (NYSE: KRO) gab bekannt, dass ihre Tochtergesellschaft Kronos International, Inc. (KII) über eine Privatplatzierung zusätzliche 75 Millionen Euro an 9,50% besicherten Schuldverschreibungen mit Fälligkeit im Jahr 2029 emittieren wird. Diese Schuldverschreibungen werden zu den bereits im Februar 2024 emittierten 276.174.000 Euro hinzugerechnet. Bei einem Aufschlag von 107,50% wird erwartet, dass das Angebot etwa 80.625.000 Euro (ungefähr 87.500.000 Dollar) vor Gebühren einbringt.
Die Erlöse werden verwendet, um einen Teil der globalen revolvierenden Kreditfazilität des Unternehmens bei Wells Fargo zurückzuzahlen, die für die jüngste Akquisition des verbleibenden Eigenkapitalanteils an der Louisiana Pigment Company, L.P. verwendet wurde. Die Anleihen werden von Kronos Worldwide und ihren inländischen Tochtergesellschaften garantiert und durch vorrangige Rechte an bestimmten Vermögenswerten gesichert. Das Angebot, für das es eine Überzeichnung gibt und das an qualifizierte institutionelle Anleger gerichtet ist, soll voraussichtlich um den 30. Juli 2024 abgeschlossen werden.
- Oversubscribed offering indicates strong investor interest
- Premium pricing at 107.50% suggests favorable market perception
- Expected proceeds of €80,625,000 (approx. $87,500,000) before fees
- Repayment of revolving credit facility may improve debt structure
- Acquisition of remaining equity in Louisiana Pigment Company strengthens market position
- Additional debt issuance may increase financial leverage
- 9.50% interest rate on notes is relatively high, potentially increasing interest expenses
- to institutional investors, potentially excluding retail shareholders from participation
The issuance of an additional €75 million of 9.50% Senior Secured Notes by Kronos Worldwide is a strategic move that deserves close scrutiny from investors. This action demonstrates the company's ability to secure substantial funding through private placement, indicating strong investor confidence. The oversubscription and premium pricing of 107.50% further emphasize this confidence. The successful issuance at such terms suggests robust financial standing and market trust in Kronos' business model and future prospects.
From a financial perspective, the proceeds amounting to approximately €80,625,000 (or $87,500,000) will be directed towards repaying part of the global revolving credit facility used for the recent acquisition of Louisiana Pigment Company. This is a positive sign as it reduces debt liabilities related to the acquisition, thereby potentially improving their debt-to-equity ratio and overall financial stability. The 9.50% interest rate on the notes is relatively high, indicating a higher cost of borrowing, which may impact future profitability. Nonetheless, the strategic utilization of these funds to consolidate ownership in a valuable asset like Louisiana Pigment Company could yield significant long-term benefits.
From a market perspective, this issuance and the subsequent use of proceeds reinforce Kronos Worldwide's strategic growth plans. The acquisition of the remaining equity interest in Louisiana Pigment Company, a chloride-process TiO2 production facility, places Kronos in a stronger competitive position within the titanium dioxide market. This sector is important for various industries, including paints, coatings, plastics and paper. By gaining full control, Kronos can streamline operations, optimize production processes and enhance profitability.
It’s also worth noting how the private placement was specifically structured to comply with various securities regulations, including Rule 144A under the U.S. Securities Act and Regulation S. This careful compliance ensures that Kronos avoids potential legal pitfalls and maintains a strong, regulatory-compliant profile. Furthermore, the swift closing of the offering, anticipated by July 30, 2024, suggests effective execution and solid demand from institutional investors, underlining market confidence.
The legal structuring of this note issuance is sophisticated and demonstrates Kronos Worldwide's careful navigation of securities regulations. By issuing the notes as additional to the existing €276,174,000 Senior Secured Notes due 2029 and ensuring they are fully and unconditionally guaranteed by the Company and its subsidiaries (subject to certain exceptions), Kronos mitigates legal risks and provides clear security to investors. The adherence to Rule 144A and Regulation S under the U.S. Securities Act ensures that the notes are marketed to qualified institutional buyers and non-U.S. persons, respectively, which aligns with international securities laws and reduces the risk of non-compliance.
Moreover, the separation of ISIN and Common Code numbers for 40 days post-issuance under Regulation S is a meticulous compliance measure, reflecting a thorough understanding of cross-border securities transactions. This careful legal planning not only protects Kronos from regulatory issues but also enhances investor confidence by ensuring that all aspects of the note issuance are above board and transparent.
Dallas, Texas, July 23, 2024 (GLOBE NEWSWIRE) -- Kronos Worldwide, Inc. (NYSE: KRO) (the “Company”) announced today that its wholly-owned subsidiary, Kronos International, Inc. (“KII”), has agreed to sell
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 Notes were oversubscribed and priced at a premium of
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 sold 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, those identified in the Company’s most recent annual and quarterly reports filed with the Securities and Exchange Commission.
* * * * *
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
![](https://ml.globenewswire.com/media/ZTRlMGFjOGQtN2Y1ZS00NjRkLThkZGUtZmUyMTkwMTNkZWU0LTEwMTc4Nzg=/tiny/Kronos-Worldwide.png)
FAQ
What is the size and purpose of Kronos Worldwide's (KRO) new note offering?
When is the expected closing date for Kronos Worldwide's (KRO) new note offering?
What is the pricing of Kronos Worldwide's (KRO) additional notes offering?