Tronox, a manufacturer of titanium dioxide pigment, closed a $350 million incremental term loan under its existing credit agreement. According to an 8K filed with the SEC, HSBC Bank is the administrative and collateral agent for the facility.

Tronox expects to use proceeds of the financing to repay outstanding borrowings under the its existing revolving credit facilities and to enhance available liquidity for upcoming capital expenditures.

“With the close of the transaction today, we have increased total available liquidity by approximately $350 million while net leverage remained neutral,” John Srivisal, senior vice president and CFO of Tronox, said. “This transaction preserves the ability for Tronox to prepay outstanding debt ahead of our nearest significant maturities, which remain 2028 and 2029, to reach our long-term gross debt target of $2 billion. The enhanced liquidity and incremental cash on hand will allow us to proceed with key capital investments in the business in the near term, primarily the mining extension projects for mines reaching end-of-life in South Africa. This will enable us to continue to realize the benefits from our vertically integrated portfolio, including internally sourced high-grade feedstock, as well as maintaining zircon production, which is a key co-product in our portfolio.”