Company: KRO
Filing Date: 2025-03-25
Form Type: DEF 14A
Source: 0001257640-25-000009
Chunk: 51

Company: KRONOS WORLDWIDE INC
Filing Date: 2025-03-25
Form: DEF 14A
Chunk 51
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. The interest rate was amended in August 2024 from 11.5% (which had been determined by adding an additional spread of 2% to the final interest rate on the 9.50% Senior Secured Notes due 2029 issued in February 2024) to 9.54% (determined by adding a spread of 2% to the effective interest rate on additional 9.50% Senior Secured Notes due 2029 issued in July 2024). The Contran Term Loan matures on demand (but no earlier than September 2029), is not subject to any amortization payments and is prepayable at par beginning in March 2026. The restrictive covenants in the Contran Term Loan are substantially similar to those contained in the indenture governing our 9.50% Senior Secured Notes due 2029. The process by which our audit committee initially approved the Contran Term Loan is more fully described in the Certain Relationships and Transactions section of our 2024 proxy statement. Prior to our entering into an amendment to the Contran Term Loan to change the interest rate to 9.54%, in August 2024 our management made presentations to our audit committee regarding the proposed amendment to the Contran Term Loan. Among other things during such presentations, the audit committee was informed of the following (in addition to the terms of the amended Contran Term Loan described above):

| ● | our offering in July 2024 of additional 9.50% Senior Secured Notes due 2029 was oversubscribed and priced at a premium of 107.50%, which resulted in an effective interest rate of 7.54%; |

| ● | the additional interest rate spread of 2% over the effective interest rate for our 9.50% Senior Secured Notes due 2029 issued in July 2024 was based upon recent comparable debt transactions illustrating the interest rate spread between secured public debt transactions and unsecured public debt transactions; and |

| ● | the chief financial officer of the Corporation, after consultation with our treasurer and other members of our management, advised the audit committee that he believes the interest rate on the Contran Term Loan, while higher than the rate we would pay under our global revolving credit facility, is reasonable in light of the effective interest rate resulting from the pricing of the additional 9.50% Senior Secured Notes issued in July 2024 (set on an arms’ length basis) and the subordinated and unsecured nature