KRONOS WORLDWIDE, INC. Contact: Gregory M. Swalwell
Three Lincoln Centre Vice President, Finance and Chief
5430 LBJ Freeway, Suite 1700 Financial Officer
Dallas, Texas 75240-2697 (972) 233-1700
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News Release
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FOR IMMEDIATE RELEASE
KRONOS WORLDWIDE, INC. ANNOUNCES CLOSING OF
PRIVATE PLACEMENT OF
SENIOR SECURED NOTES BY ITS SUBSIDIARY
KRONOS INTERNATIONAL, INC.
DALLAS, TX -April 11, 2006 - Kronos Worldwide, Inc. (NYSE: KRO) today announced
the closing of a private placement by its wholly-owned subsidiary, Kronos
International, Inc., of (euro)400 million ($480 million at current exchange
rates) of Senior Secured Notes due 2013 at an interest rate of 6 1/2% and priced
at 99.306%. Kronos International, Inc. conducts Kronos Worldwide's titanium
dioxide pigments operations in Europe. The net proceeds of the offering of
approximately $467.9 million, together with approximately $2.1 million of cash
on hand, were used to repay Kronos International's outstanding 8?% senior
secured notes due 2009.
The Notes were sold to qualified institutional buyers in the United States in
reliance on Rule 144A and to persons outside of the United States in reliance on
Regulation S under the Securities Act of 1933, as amended. The Notes were not
registered under the Securities Act and, unless so registered, may not be
offered or sold in the United States except pursuant to an exemption from, or in
a transaction not subject to, the registration requirements of the Securities
Act and applicable state securities laws. This press release shall not
constitute an offer to sell or the solicitation of an offer to buy, nor shall
there be any sale of the Notes in any state in which such offer, solicitation or
sale would be unlawful prior to the registration or qualification under the
securities laws of any such state.
The statements in this release relating to matters that are not historical facts
are forward-looking statements that represent management's beliefs and
assumptions based on currently available information. Forward-looking statements
can be identified by the use of words such as "will," "anticipates," "expects,"
or comparable terminology or by discussions of strategy or trends. Although we
believe that the expectations reflected in such forward-looking statements are
reasonable, it cannot give any assurances that these expectations will prove to
be correct. Such statements by their nature involve risks and uncertainties,
including, but not limited to, global economic and political conditions,
financial market conditions, changes in foreign currency exchange rates,
operating interruptions (including, but not limited to, labor disputes, leaks,
fires, explosions, unscheduled downtime, transportation interruptions, war and
terrorist activities), and other risks and uncertainties detailed in our
Securities and Exchange Commission filings. Should one or more of these risks
materialize (or the consequences of such a development worsen), or should the
underlying assumptions prove incorrect, actual results could differ materially
from those forecasted or expected. We disclaim any intention or obligation to
update publicly or revise such statements, whether as a result of new
information, future events or otherwise.
Kronos Worldwide, Inc. is a major international producer of titanium dioxide
pigments.