Kronos Worldwide Announces €75M Debt Offering

By Hao Liu • Wednesday, September 03 10:28 • Permanent Link

Kronos Worldwide, Inc. (NYSE: KRO) has announced its intention to raise debt capital through a private offering of €75 million aggregate principal amount of 9.50% senior secured notes due 2029. This offering is in 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. (KII), issued on February 12, 2024, and July 30, 2024.

The notes being offered 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 domestic, wholly-owned subsidiaries, subject to certain exceptions, and will be secured by first-priority security interests in certain assets of the company and the guarantors.

The company intends to use the proceeds from this 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 the company's general corporate purposes.

This press release also includes information regarding the registration and offering of the notes, as well as details about the company, its history, and its position as a leading global producer and marketer of titanium dioxide pigments.

This announcement highlights the company's strategic move to raise additional debt capital and its intention to utilize the proceeds to address its existing financial obligations and for general corporate purposes.

The shift in the company's capital structure and its use of proceeds from the offering reflect its ongoing financial strategy and commitment to managing its debt obligations and pursuing its corporate objectives. Following these announcements, the company's shares moved -2.82%, and are now trading at a price of $6.20. If you want to know more, read the company's complete 8-K report here.

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