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KRO

Kronos Worldwide Inc to Raise €75 Million in Debt Capital

Kronos Worldwide, Inc. has announced its intention to raise debt capital through a private offering of €75 million aggregate principal amount of additional 9.50% senior secured notes due 2029. This offering is an addition to the existing €351,174,000 aggregate principal amount of 9.50% senior secured notes due 2029 that the company's wholly-owned subsidiary, Kronos International, Inc., issued on February 12, 2024 and July 30, 2024.

The notes will have the same terms as the existing notes, except for the date of issuance and issue price. They will be fully and unconditionally guaranteed, jointly and severally, on a senior basis by the company and its direct and indirect domestic, wholly-owned subsidiaries, subject to certain exceptions, and secured by first-priority security interests in certain assets of the company and the guarantors.

The company intends to use the proceeds of the offering, after payment of fees and expenses, to pay amounts due under its 3.75% senior secured notes due September 15, 2025 at maturity or to repay any amounts drawn under its global revolving credit facility with Wells Fargo to repay such notes at maturity. Any remaining net proceeds will be used for general corporate purposes.

This press release does not constitute an offer to sell, or the solicitation of an offer to buy any of the notes. 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 qualified institutional buyers in reliance on rule 144a under the securities act and in offshore transactions to non-U.S. persons outside the U.S.

Kronos Worldwide, Inc. is a leading global producer and marketer of value-added titanium dioxide pigments, with the majority of its sales in Europe, North America, and the Asia Pacific region. The company sells and provides technical services for its products to approximately 3,000 customers in 100 countries. The market has reacted to these announcements by moving the company's shares -0.97% to a price of $6.14. Check out the company's full 8-K submission here.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.

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