Kronos Worldwide adjusts credit agreement terms

Published 19/12/2024, 22:26
Kronos Worldwide adjusts credit agreement terms

Dallas-based industrial chemicals manufacturer Kronos Worldwide Inc . (NYSE:KRO), with a market capitalization of $1.12 billion, announced on Thursday that it has entered into a third amendment to its existing credit agreement, initially dated April 20, 2021. According to InvestingPro data, the company maintains a strong financial position with liquid assets exceeding short-term obligations.

This revision allows for certain senior secured notes to remain outstanding without accelerating the maturity date of its $300 million credit facility.

The amendment specifically modifies the definition of the Maturity Date within the credit agreement, enabling the 3.75% Senior Secured Notes due in 2025, issued by Kronos International, Inc., a fully owned subsidiary, to stay outstanding through their maturity date. This is contingent upon a minimum liquidity condition being met. The overarching maturity date of the credit facility, set for July 17, 2029, remains unchanged.

Additionally, the Third Amendment expands the definition of Notes Indenture to encompass the indenture governing the 9.50% Senior Secured Notes due 2029, also issued by Kronos International, Inc. Except for the changes described, all other material terms of the Credit Agreement are maintained.

This strategic financial move by Kronos Worldwide Inc. provides the company with increased flexibility in managing its long-term debt obligations. The company maintains a healthy current ratio of 2.68 and a manageable total debt-to-capital ratio of 0.34, demonstrating prudent balance sheet management.

Kronos Worldwide, a player in the industrial inorganic chemicals sector, continues to manage its financial obligations while navigating the market's demands. InvestingPro analysis indicates the stock is currently trading below its Fair Value, with additional insights showing a 15-year track record of consistent dividend payments. Subscribers can access 4 more exclusive ProTips and detailed valuation metrics at InvestingPro.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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