Long-Term Debt

6 Months Ended

Jun. 30, 2022

Debt Disclosure [Abstract]

Long-Term Debt

Note 6 – Long-term debt:

	December 31,		June 30,
	2021		2022
	(In millions)
Valhi:
Contran credit facility	$	172.9	$	153.4
Subsidiary debt:
Kronos:
Senior Secured Notes		448.8		415.1
BMI:
BWC Bank loan from Western Alliance Bank		15.4		14.3
LandWell:
Note payable to Western Alliance Business Trust		13.5		13.2
Other		2.4		2.1
Total subsidiary debt		480.1		444.7
Total debt		653.0		598.1
Less current maturities		(3.1)		(16.4)
Total long-term debt	$	649.9	$	581.7

Valhi – Contran credit facility – During the first six months of 2022, we had borrowings of $.1 million and repayments of $19.6 million under this facility. The average interest rate on the existing balance for the six months ended June 30, 2022 was 4.61%. At June 30, 2022, the interest rate was 5.75% and $71.6 million was available for borrowing under this facility.

Kronos – Senior Notes – At June 30, 2022, the carrying value of Kronos’ 3.75% Senior Secured Notes due September 15, 2025 (€400 million aggregate principal amount outstanding) is stated net of unamortized debt issuance costs of $2.8 million.

Revolving credit facility – During the first six months of 2022, Kronos had no borrowings or repayments under its $225 million global revolving credit facility (“Global Revolver”) and at June 30, 2022, the full $225 million was available for borrowing under the Global Revolver.

BMI – In February 2017, BWC entered into a $20.5 million loan agreement with Western Alliance Bank. The agreement requires semi-annual payments of principal and interest on June 1 and December 1, aggregating $1.9 million annually beginning on June 1, 2017 through the maturity date in June 2032. The agreement bears interest at 5.34% and is collateralized by certain real property, including the water delivery system, and revenue streams under the City of Henderson water contract. Because of a decline in value of collateral as a result of the impairment of the water delivery system fixed assets discussed in Note 2, BWC is in default of its loan agreement and we have reclassified the $14.3 million carrying value of the loan to current.  BWC has $7.3 million in restricted cash which is held by Western Alliance Bank under the terms of its loan agreement, and such restricted cash has been reclassified to current consistent with the classification of the debt balance.  The carrying value of the loan is stated net of debt issuance costs of $.5 million at June 30, 2022.

Other – With the exception of the BWC loan agreement discussed above, we are in compliance with all of our debt covenants at June 30, 2022.