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Matador price target raised to $57 from $53 at RBC Capital 06:59 MTDR
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Tronox Announces Launch of Incremental Term Loan and Redemption of 6.5% Senior Secured Notes due 2025
Wed, February 23, 2022, 7:45 AM
STAMFORD, Conn.,Feb. 23, 2022/PRNewswire/ -- Tronox Holdings plc (NYSE: TROX; the "Company"), the world's leading integrated manufacturer of titanium dioxide pigment, today announced the launch of an incremental term loan under the Company's existing credit agreement in an amount of$400 million(the "Incremental Term Loan"), the proceeds of which are expected to be used, along with cash on hand, to redeem all of its outstanding$500 millionaggregate principal amount of 6.5% Senior Secured Notes due 2025 (the "Notes"). In connection thereto, the Company has delivered a notice of redemption (the "Notice") to the trustee of the Notes which specifies that redemption of the Notes is conditioned on closing of the Incremental Term Loan. The redemption price for the Notes will be 100% of the principal amount redeemed, plus a customary "make-whole" premium, plus interest accrued and unpaid to the redemption date, in accordance with the provisions of the indenture governing the Notes. The redemption date is expected to occur on April 4, 2022.

Tronox Limited. (PRNewsFoto/Tronox Limited)
"The transaction will reduce our gross debt by$100 millionto our previously stated$2.5 billion target, ahead of our 2023 goal," said Tim Carlson, senior vice president and chief financial officer. "Additionally, the transaction will reduce cash interest payments, extend maturities, and replace secured bond debt with prepayable term loan debt. Consistent with our capital allocation priorities, we intend to allocate remaining free cash flow after capital expenditures and dividend payments towards continued debt reductions and opportunistic share repurchases."