Tronox To Sell Alkali Chemicals Business To Genesis Energy For $1.325 Bln

(RTTNews) - Tronox Limited (TROX) announced that it agreed to sell its Alkali Chemicals business to Genesis Energy, L.P. (GEL), a diversified midstream energy master limited partnership headquartered in Houston, Texas, for $1.325 billion in cash.

The transaction is expected to close in the second half of 2017, subject to customary regulatory approvals and closing conditions.

In conjunction with the transaction, Genesis has received binding commitments for the purchase of approximately $750 million of 8.75% Class A Convertible Preferred Units from investment vehicles affiliated with KKR Global Infrastructure Investors II, L.P. and GSO Capital Partners LP ("GSO"). KKR and GSO will acquire approximately 22.2 million units at a price of $33.71 per unit.

Tronox reported that its second-quarter preliminary revenue was $622 million up 16 percent versus prior year. It reported GAAP EPS of $0.02; adjusted EPS of $0.09.

Loss from sale related to the Alkali transaction is expected to be approximately $200 million in the second half of the year.

Tronox plans to report its full second quarter 2017 financial results on Tuesday, August 8, 2017.