Kronos Worldwide, a global producer of titanium dioxide pigments, revealed plans to bolster its finances. The company will issue €75 million in additional 9.50% senior secured notes due 2029 through its subsidiary, Kronos International, Inc. (KII).
These notes will complement KII’s existing €351.174 million in similar notes. The new notes will share the same terms as the existing ones, except for issuance date and price. They will also utilize the same ISIN and Common Code numbers, with minor exceptions for notes issued under Regulation S.
The notes are fully guaranteed by Kronos Worldwide and its subsidiaries, secured by first-priority interests in company assets. The offering’s success depends on prevailing market conditions.
The company plans to allocate the net proceeds to repay its 3.75% senior secured notes maturing on September 15, 2025. Alternatively, these funds could repay any amounts drawn under the company’s credit facility with Wells Fargo for the same purpose. Any remaining funds will be used for general corporate objectives.
The offering is not being registered under the U.S. Securities Act of 1933. It will be available only to qualified institutional buyers under Rule 144A and to non-U.S. persons outside the U.S. under Regulation S, excluding retail investors in the EEA or the UK. The notes will not be offered or sold in the United States to U.S. persons unless a valid registration or exemption is in place.
Kronos Worldwide, founded in Delaware in 1989, is a leading global supplier of titanium dioxide pigments (TiO2). The company serves roughly 3,000 customers across 100 countries, with significant sales in Europe, North America, and the Asia Pacific region.
The company’s announcement includes forward-looking statements based on current management beliefs and assumptions. These statements, concerning the debt offering and its potential effects, involve inherent risks and uncertainties, which could materially affect actual results. Such factors include general market conditions for corporate debt and the specialty chemical sector.
Further details on these risks are available in the company’s filings with the Securities and Exchange Commission. This release is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy securities. Investors can contact Bryan A. Hanley, Senior Vice President and Treasurer, for further information.
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