Aug 15 - Standard & Poor's Ratings Services said today that its 'BB-' issue
rating and '5' recovery rating on the senior notes issued by Tronox Finance
LLC-a subsidiary of Tronox Ltd. -remain unchanged following the
company's $250 million increase in the proposed senior-note offering, to $900
million. All our other ratings on Tronox, including the 'BB' corporate credit
rating, also remain unchanged. The outlook remains stable.
Tronox will use the proceeds to fund a $400 million return of capital to
shareholders and for general corporate purposes. The company could also use
the proceeds for further returns of capital to shareholders from time to time.
The '5' recovery rating on Tronox's proposed senior notes indicates our
expectation of a modest (10% to 30%) recovery in the event of a payment
default. For the complete recovery analysis, see Standard & Poor's recovery
report on Tronox to be published later on RatingsDirect.
For the latest complete corporate credit rating rationale, see Standard &
Poor's research update "Tronox Finance LLC $650 Million Senior Notes Assigned
'BB-' Rating; Tronox Ltd. 'BB' Corporate Credit Rating Affirmed," published
Aug. 13, 2012.
Corporate credit rating BB/Stable/--
Tronox Finance LLC
$900 million senior
unsecured notes due 2020 BB-
Recovery rating 5
Complete ratings information is available to subscribers of RatingsDirect on
the Global Credit Portal at www.globalcreditportal.com. All ratings affected
by this rating action can be found on Standard & Poor's public Web site at
www.standardandpoors.com. Use the Ratings search box located in the left