| NEW YORK, June 1
NEW YORK, June 1 Kronos Worldwide Inc
has bumped up the rate on its $600 million, seven-year term loan
B, sources told Thomson Reuters LPC.
Pricing is now 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
The loan will now amortize at 5 percent per year, up from
the original proposal of 1 percent per year. The issuer has 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.
Proceeds will be used to refinance around 280 million euro
of outstanding notes due 2013 at subsidiary Kronos International
Inc (KII), Kronos said in a statement. The remaining proceeds
would be used for general corporate purposes, which could
include the payment of a special dividend of up to $1 per share.
The corporate family rating is Ba2, while the facility rating is
Kronos Worldwide Inc is an international producer of
titanium dioxide products.