| NEW YORK, June 8
NEW YORK, June 8 Kronos Worldwide Inc
has made a second round of investor-friendly changes after
increasing the rate and tightening the amortization language on
its term loan B late last week, sources told Thomson Reuters
The issuer has reduced its term loan B to $400 million from
$600 million, while also shortening the tenor on the facility to
six years from seven years. Additionally, Kronos has scrapped
plans to issue a dividend and to repay a European revolver.
Kronos has also increased the rate on its loan for a second
time to 475bp over Libor with a 1 percent Libor floor and a
discount of 98.5 cents on the dollar. Proceeds will now be used
just to refinance debt.
Last week, Kronos bumped up the rate on the term loan B to
425bp over Libor with a 1 percent Libor floor and a discount of
99 cents on the dollar. At launch, the loan was guided at 375bp
over Libor with the same Libor floor and discount.
The loan will now amortize at 5 percent per year, up from
the original proposal of 1 percent per year. The issuer also
added financial covenants to the originally covenant-lite loan.
The loan now features a net leverage ratio of 3.5 times.
As previously reported, Wells Fargo leads the credit, which is
rounded out by a $125 million, five-year revolver. The corporate
family rating is Ba2, while the facility rating is Ba3.
Kronos Worldwide Inc is an international producer of
titanium dioxide products.