2 unchanged sentences
Interest Rates – We are exposed to market risk from changes in interest rates, primarily related to our indebtedness and or investment in marketable debt securities.
−Removed: At December 31, 2023 we have $58.7 million invested in marketable debt securities at an average interest rate of approximately 4.3%.
−Removed: At December 31, 2023 our aggregate indebtedness was split between 83% of fixed-rate instruments (December 31, 2022 – 78%) and 17% of variable-rate borrowings (December 31, 2022 – 22%).
+Added: At December 31, 2024, our aggregate indebtedness was comprised primarily of Kronos’ fixed-rate, euro-denominated KII 9.50% Senior Secured Notes due 2029 and KII 3.75% Senior Secured Notes due 2025.
The fixed-rate debt instruments minimize earnings volatility that would result from changes in interest rates.
The Kronos Global Revolver is a variable-rate instrument.
−Removed: however, Kronos had no borrowings under this facility during 2022 or 2023.
The following table presents principal amounts and weighted average interest rates for our aggregate outstanding indebtedness at December 31, 2024.
+Added: Information shown below for Kronos’ euro-denominated 9.50% and 3.75% Senior Secured Notes due 2029 and 2025, respectively, is presented in its U.S.
+Added: dollar equivalent at December 31, 2024 (net of unamortized debt issuance costs of $6.3 million, in addition to an unamortized bond premium of $5.3 million) using an exchange rate of U.S.
+Added: $1.043 per euro.
+Added: In addition, at December 31, 2024, Kronos has a $53.7 million subordinated, unsecured term loan payable to a related party, Contran, due September 2029, and Valhi has $44.6 million outstanding on an unsecured revolving credit facility with Contran.
+Added: See Note 9 to our Consolidated Financial Statements.
Indebtedness Amount
2 unchanged sentences
Kronos fixed-rate 9.50% Senior Secured Notes due 2029
+Added: Kronos fixed-rate 3.75% Senior Secured Notes due 2025
LandWell bank note payable
Total fixed-rate indebtedness
−Removed: Variable-rate indebtedness:
−Removed: Valhi Contran credit facility
−Removed: On February 12, 2024 KII exchanged €325 million principal amount of the outstanding 3.75% Senior Secured Notes due 2025 for newly issued €276.174 million aggregate outstanding KII 9.50% Senior Secured Notes due March 2029.
−Removed: See Note 9 to our Consolidated Financial Statements.
+Added: Variable-rate indebtedness - Kronos revolving credit facility
Currency Exchange Rates – We are exposed to market risk arising from changes in currency exchange rates as a result of manufacturing and selling our products worldwide.
10 unchanged sentences
Certain raw materials used worldwide, primarily titanium-containing feedstocks, are purchased primarily in U.S.
−Removed: dollars, while labor and other production and administrative costs are purchased primarily in local currencies.
+Added: dollars, while labor and other production and administrative costs are purchased primarily in local
Consequently, the translated U.S.
9 unchanged sentences
We are not party to any currency forward contracts at December 31, 2024.
−Removed: Also, we are subject to currency exchange rate risk associated with Kronos’ Senior Secured Notes, as such indebtedness is denominated in euros.
−Removed: At December 31, 2023, we had the equivalent of $442.5 million outstanding under Kronos’ euro-denominated 3.75% Senior Secured Notes due 2025 (exclusive of unamortized debt issuance costs).
+Added: Also, we are subject to currency exchange rate risk associated with Kronos’ Senior Secured Notes due 2025 and 2029, as such indebtedness is denominated in euros.
+Added: At December 31, 2024, we had the equivalent of $365.4 million outstanding under Kronos’ euro-denominated KII 9.5% Senior Secured Notes due 2029 (exclusive of unamortized bond premium and debt issuance costs) and $78.3 million outstanding under Kronos’ euro-dominated KII 3.75% Senior Secured Notes due 2025 (exclusive of unamortized debt issuance costs).
The potential increase in the U.S.
5 unchanged sentences
Raw material pricing under these agreements is generally negotiated quarterly or semi-annually depending upon the suppliers.
−Removed: For certain raw material requirements we do not have long-term supply agreements either because we have assessed the risk of the unavailability of those raw materials and/or
−Removed: the risk of a significant change in the cost of those raw materials to be low, or because long-term supply agreements for those raw materials are generally not available.
+Added: For certain raw material requirements we do not have long-term supply agreements either because we have assessed the risk of the unavailability of those raw materials and/or the risk of a significant change in the cost of those raw materials to be low, or because long-term supply agreements for those raw materials are generally not available.
Our Component Products Segment will occasionally enter into short term commodity-related raw material supply arrangements to mitigate the impact of future increases in commodity-related raw material costs.
13 unchanged sentences
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.