Rockwood and Kemira TiO2 Joint Venture Enter New Facility Financing Agreement
PRINCETON, N.J.--(BUSINESS WIRE)-- Rockwood Holdings, Inc. (ROC) today announced that its titanium dioxide joint venture Sachtleben Gmbh has entered into a new facility financing agreement in the aggregate amount of ¬430.0 million, consisting of ¬200.0 million of term loan A, ¬200.0 million of term loan B and a ¬30.0 million revolving credit facility. The funding of the facility will occur within the next two weeks and will be used to repay the outstanding balance of the existing facility agreement, pay a dividend to the joint venture partners and for other corporate purposes. The facility has a maturity of five years.
Commenting on the financing, Seifi Ghasemi, chairman and chief executive officer of Rockwood, said, This transaction is an important strategic step toward realizing the full value of our TiO2 joint venture. In addition to providing liquidity to strengthen the strategic position of Sachtleben, the new facility enables the JV to pay a significant dividend to the joint venture partners.
The joint venture, which was formed in August 2008 by combining Rockwoods TiO2 pigments and functional additives business with Kemira Oyjs TiO2 business, is a leading producer of specialty TiO2 pigments for the synthetic fiber, packaging inks, cosmetics, pharmaceutical and food industries.
Rockwood Holdings, Inc. is a leading global inorganic specialty chemicals and advanced materials company. Rockwood has a worldwide employee base of approximately 9,700 people and annual net sales of approximately $3.7 billion. The company focuses on global niche segments of the lithium, surface treatment, pigments and additives and advanced materials markets. For more information on Rockwood, please visit www.rocksp.com.
The information set forth in this press release contains certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 concerning the business, operations and financial condition of Rockwood Holdings, Inc. and its subsidiaries and affiliates ("Rockwood"). Words such as "anticipates," "believes," "estimates," "expects," "forecasts," "predicts" and variations of such words or expressions are intended to identify forward-looking statements. Although Rockwood believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions, there can be no assurance that its expectations will be realized. "Forward-looking statements" consist of all non-historical information, including any statements referring to the prospects and future performance of Rockwood. Actual results could differ materially from those projected in Rockwood's forward-looking statements due to numerous known and unknown risks and uncertainties, including, among other things, the "Risk Factors" described in Rockwood's periodic reports on file with the Securities and Exchange Commission. Rockwood does not undertake any obligation to publicly update any forward-looking statement to reflect events or circumstances after the date on which any such statement is made or to reflect the occurrence of unanticipated events.
For Rockwood Holdings, Inc.
Timothy McKenna, 609-734-6430
Axel Markens, +49 2066 22-2623
Source: Rockwood Holdings, Inc.Copyright Business Wire 2012