Wells Fargo Provides Financing to Kronos Worldwide
Kronos Worldwide, Inc. announced it has completed a new $400 million senior secured term loan B and a $125 million revolving bank credit facility. Wells Fargo Bank is administrative agent and Wells Fargo Securities is sole lead arranger and sole book manager.
A portion of the net proceeds of the term loan were used to refinance the Kronos International, Inc. 6.5% senior secured notes due April 2013 (€279.2 million principal amount outstanding), which have been called for redemption on July 20, 2012.
The new $400 million term loan provides for an additional $100 million of term loan borrowings in the future under certain conditions. The remaining net proceeds of the $400 million term loan, plus any additional term loan, which might be borrowed in the future, will be used for general corporate purposes. The new term loan permits the continuation of the payment of regular quarterly dividends as well as the payment of special dividends.
Kronos Worldwide also announced that the new $125 million revolving bank credit facility will also be used for general corporate purposes.
Kronos Worldwide, Inc. is a major international producer of titanium dioxide products.