Company: KRO
Filing Date: 2025-03-25
Form Type: DEF 14A
Source: 0001257640-25-000009
Chunk: 50

Company: KRONOS WORLDWIDE INC
Filing Date: 2025-03-25
Form: DEF 14A
Chunk 50
---
issory note with Valhi is more fully described in the Certain Relationships and Transactions section of our 2024 proxy statement. In February 2024, our management made a presentation to our audit committee regarding cancellation of our loan to Valhi. Among

-29-

other things during such presentation, the committee was informed that Valhi had not borrowed any amounts under the note for over five years and does not anticipate any future borrowings based on forecasted liquidity needs, and management discussed its recommendation to enter into a mutual cancellation of the note with Valhi, in light of Contran’s new loan to Kronos Worldwide and the current and forecasted liquidity needs of us and Valhi. As part of such presentation, our chief financial officer, after consultation with our treasurer and other members of our management, advised the committee of his belief that the terms of the cancellation are fair and reasonable to us, and are on terms no less favorable than we could otherwise obtain from unrelated parties, and provided the committee with his recommendation that the committee approve, adopt and ratify the cancellation in all respects. After considering the information contained in the presentation, including the recommendation of our chief financial officer, and following further discussion and review by the audit committee, our audit committee determined that the terms of the cancellation are fair and reasonable to us, and are on terms no less favorable than we could otherwise obtain from unrelated parties, in each case based on the collective business judgment and experience of members of the committee, and the committee approved, adopted and ratified the cancellation of our loan to Valhi in all respects. Subordinated, Unsecured Term Loan from Contran .In February 2024, we entered into an unsecured subordinated term promissory note with Contran (the “ Contran Term Loan”) pursuant to which we borrowed approximately $53.7 million from Contran on a subordinated, unsecured basis, as part of the refinancing of a majority of our 3.75% Senior Secured Notes due 2025. The Contran Term Loan is guaranteed by certain of our domestic wholly owned subsidiaries. Our obligations under the Contran Term Loan, and the obligations of the guarantors under the related guaranties, are unsecured and subordinated in right of payment to our 9.50% Senior Secured Notes due 2029, our 3.75% Senior Secured Notes due 2025, and our global revolving credit facility with an unaffiliated third party. Interest on the Contran Term Loan is payable in cash