Specialty chemicals company
Rockwood Holdings Inc.
) has repaid all outstanding borrowings under the secured
facility of its fully-owned unit Sachtleben GmbH. The company
repaid the debt using cash on hand.
The total €394.5 million ($508.9 million) debt repaid consists
of €190 million ($245.1 million) of term loan A, €200 million
($258 million) of term loan B and a €4.5 million ($5.8 million)
revolving credit facility. The repayment follows Rockwood's $250
million reduction of its senior secured term loan B credit
facility in Oct last year.
Sachtleben, a leading producer of high-quality titanium
dioxide (TiO2), was formed in Sep 2008 through the union of
Rockwood's TiO2 pigments and functional additives business and
Finland-based specialty chemicals maker Kemira Oyj's TiO2
business. Its major products include TiO2 in anatase grade, TiO2
in rutile grade and titanium specialties. Sachtleben caters to a
bevy of industries including synthetic fibers, plastics, paints,
packaging inks, coatings, cosmetics and pharmaceuticals.
Rockwood recently bought Kemira's 39% stake in Sachtleben for
€97.5 million ($130 million). The weak TiO2 market conditions
triggered Kemira's decision to divest its interest in the joint
venture. The transaction provided Rockwood full control of
However, Rockwood is also contending with a soft TiO2 market.
The company witnessed weak demand in the TiO2 business in 2012.
Lower pricing and higher raw material costs affected the business
in the fourth quarter. Rockwood sees weakness in its TiO2
business in the first half of 2013. The company is planning to
exit the business by the end of 2013.
Rockwood noted that the debt repayment underscores its
progress towards achieving its stated goals of de-leveraging its
balance sheet and facilitating the divestiture process for
Rockwood currently retains a short-term (1 to 3 months) Zacks
Rank #4 (Sell).
Other companies in the specialty chemicals space with
favorable Zacks Rank are
HB Fuller Co.
). While Balchem holds a Zacks Rank #1 (Strong Buy), both HB
Fuller and Novozymes retain a Zacks Rank #2 (Buy).
BALCHEM CP CL-B (BCPC): Free Stock Analysis
FULLER(HB) CO (FUL): Free Stock Analysis
NOVOZYMES A/S (NVZMY): Get Free Report
ROCKWOOD HLDGS (ROC): Free Stock Analysis
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