Tronox Announces Closing of $350M Incremental Term Loan
August 21, 2023
Source: Nasdaq
Tronox Holdings plc (TROX) recently announced the closing of a $350 million incremental term loan under its existing credit agreement, the proceeds of which are likely to be utilized to repay outstanding borrowings under the company's existing revolving credit facilities and increase available liquidity for upcoming capital expenditures.
The company's overall available liquidity has increased by about $350 million as of transaction closing. Moreover, net leverage remains neutral. This transaction safeguards Tronox's capacity to repay outstanding debt ahead of its next significant maturities, which will occur in 2028 and 2029, to meet its long-term gross debt target of $2 billion.
The increased liquidity and cash on hand will enable the company to proceed with important capital expenditures in the business in the near term, particularly mining extension projects for mines approaching the end of their lives in South Africa. This will allow Tronox to continue to benefit from its vertically integrated portfolio, including internally produced high-grade feedstock, as well as sustaining zircon production, a significant co-product in its portfolio.
Adjusted earnings of Tronox in the second quarter of 2023 fell to 16 cents per share from 84 cents in the year-ago quarter. It missed the Zacks Consensus Estimate of 27 cents.
Tronox had cash and cash equivalents of $167 million on Jun 30, 2023, up from $164 million as of Dec 31, 2022. Long-term debt was $2,450 million, down from $2,464 million as of Dec 31, 2022.
Shares of Tronox have lost 17.3% over the past year against the 1.7% growth of its industry.
The company's overall available liquidity has increased by about $350 million as of transaction closing. Moreover, net leverage remains neutral. This transaction safeguards Tronox's capacity to repay outstanding debt ahead of its next significant maturities, which will occur in 2028 and 2029, to meet its long-term gross debt target of $2 billion.
The increased liquidity and cash on hand will enable the company to proceed with important capital expenditures in the business in the near term, particularly mining extension projects for mines approaching the end of their lives in South Africa. This will allow Tronox to continue to benefit from its vertically integrated portfolio, including internally produced high-grade feedstock, as well as sustaining zircon production, a significant co-product in its portfolio.
Adjusted earnings of Tronox in the second quarter of 2023 fell to 16 cents per share from 84 cents in the year-ago quarter. It missed the Zacks Consensus Estimate of 27 cents.
Tronox had cash and cash equivalents of $167 million on Jun 30, 2023, up from $164 million as of Dec 31, 2022. Long-term debt was $2,450 million, down from $2,464 million as of Dec 31, 2022.
Shares of Tronox have lost 17.3% over the past year against the 1.7% growth of its industry.
.jpg?sfvrsn=f1093d2a_0 "#3 -_ 1 (1)")
© 2025 Secured Finance Network
