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Debt
 3 Months Ended
Mar. 31, 2023
Debt Disclosure [Abstract]  
Debt Debt
Long-Term Debt
Long-term debt, net of an unamortized discount and debt issuance costs, consisted of the following:
Original
Principal		Annual
Interest Rate		Maturity
Date		March 31, 2023December 31, 2022
Term Loan Facility, net of unamortized discount (1)
1,300 Variable3/11/2028$898 $898 
2022 Term Loan Facility, net of unamortized discount(1)
400 Variable4/4/2029393 393 
Senior Notes due 2029 1,075 4.625 %3/15/20291,075 1,075 
Standard Bank Term Loan Facility (1)
98 Variable11/11/202672 77 
Australian Government Loan, net of unamortized discountN/AN/A12/31/20361 1 
MGT Loan(2)
36VariableVariable29 30 
Finance leases46 47 
Long-term debt2,514 2,521 
Less: Long-term debt due within one year(24)(24)
Debt issuance costs(32)(33)
Long-term debt, net$2,458 $2,464 
_______________
(1)The average effective interest rate on the Term Loan Facility (including the impacts of the interest rate swaps), the 2022 Term Loan Facility and the Standard Bank Term Loan Facility was 5.3%, 8.4% and 9.7%, respectively, during the three months ended March 31, 2023. The average effective interest rate on the Term Loan Facility and Standard Bank Term Loan Facility was 4.5% and 6.3%, respectively, during the three months ended March 31, 2022.
(2)The MGT loan is a related party debt facility. The average effective interest rate on the MGT loan was 6.0% and 3.2% during the three months ended March 31, 2023 and March 31, 2022, respectively.
Term Loan Facility
The Term Loan Facility bears interest at either the base rate or an adjusted LIBOR rate, in each case plus an applicable margin. Based on our first lien net leverage ratio pursuant to the Term Loan Facility agreement, the applicable margin under the Term Loan Facility as of March 31, 2023 was 2.25%.
2022 Term Loan Facility
On April 4, 2022, Tronox Finance LLC (the "Borrower"), the Borrower's indirect parent company, Tronox Holdings plc (the "Company"), certain of the Company's subsidiaries, the incremental term lender party thereto, and HSBC Bank USA. National Association, as Administrative Agent and Collateral Agent, entered into Amendment No. 1 to the Amended and Restated First Lien Credit Agreement (the "Amendment"). The Amendment provides the Borrower with a new seven-year incremental term loan facility (the "2022 Term Loan Facility" and, the loans thereunder, the "2022 Incremental Term Loans") under its credit agreement in an aggregate initial principal amount of $400 million. The proceeds of the 2022 Term Loan Facility were used on April 1, 2022, along with cash on hand, to redeem all outstanding 6.5% Senior Secured Notes due 2025 and to pay transaction related costs and expenses. As a result of this transaction, we recognized approximately $1 million in "Loss on extinguishment of debt" on the unaudited Consolidated Statement of Income for the three months ended March 31, 2022.
The 2022 Incremental Term Loans shall bear interest, at the Borrower's option, at either the base or the SOFR rate, in each case plus an applicable margin. The applicable margin in respect of the 2022 Incremental Loans is 2.25% per annum, for base rate loans, or 3.25% per annum, for SOFR rate loans. The 2022 Incremental Term Loans have an interest rate floor of 0.50%. As of March 31, 2023, the applicable margin under the 2022 Term Loan Facility was 3.25%.
Short-Term Debt
Emirates Revolver
During the three months ended March 31, 2023, we drew down 35 million Pound Sterling (approximately $43 million at the March 31, 2023 exchange rate) which remained outstanding at March 31, 2023. Additionally, during the three months ended March 31, 2023, the Company entered into an amendment to extend the maturity date of the Emirates Revolver from March 31, 2023 to June 30, 2023.
SABB Facility
During the three months ended March 31, 2023, we drew down SAR 16 million (approximately $4 million at the March 31, 2023 exchange rate) under the SABB Facility for general corporate purposes which remains outstanding at March 31, 2023.
Cash Flow Revolver
During the three months ended March 31, 2023, we drew down an additional $100 million and made repayments of $10 million on our Cash Flow Revolver. The outstanding principal balance on the Cash Flow Revolver was $120 million at March 31, 2023
In April 2023, the Company drew down $45 million on its Cash Flow Revolver for general corporate purposes.
Insurance premium financing
In August 2022, the Company entered into a $21 million insurance premium financing agreement with a third-party financing company. The balance will be repaid in monthly installments over 10 months at a 5% fixed annual interest rate. As of
March 31, 2023, the financing balance was $4 million and is recorded in "Short-term debt" in the Condensed Consolidated Balance Sheet.
Debt Covenants
As of March 31, 2023, we are in compliance with all financial covenants in our debt facilities.