Titanium producer Tronox (NYSE:TROX) increased the size of a recently announced senior secured loan commitment from $1.3 billion to $1.5 billion, the funds from which will be used for both general corporate purposes and to pursue potential strategic alternatives.
The new loan matures in March 2020 and will leave Tronox with approximately $1.5 billion in cash on its balance sheet after it prepays the current outstanding loan. Goldman Sachs Bank USA, UBS Securities, Credit Suisse Securities, and RBC Capital Markets were the joint lead arrangers, joint book-runners, and co-syndication agents of the facility.
The original commitment was announced on Feb. 26, when Tronox's chairman and CEO, Tom Casey, said the refinancing capitalized on the favorable credit environment, giving it a better chance to double profits by 2017. The term loan "empowers the company with the operational and strategic flexibility to grow and create value for our shareholders."
Tronox is a global leader in the production and marketing of titanium-bearing mineral sands and titanium dioxide pigment.