CC – Traded Base Case iCDS 143bps, Negative Case iCDS 209bps, 2027 5.375% Bond YTW of 3.611%, iYTW of 2.091%, Ba3 Rating from Moody’s, XO (equivalent to Baa3) Rating from Valens, Low Refinancing Need

• Credit markets are materially overstating CC’s credit risk with a YTW of 3.611%, relative to an Intrinsic YTW of 2.091% and an Intrinsic CDS of 143bps. Furthermore, Moody’s is overstating the company’s fundamental credit risk, with its speculative Ba3 credit rating three notches lower than Valens’ XO (Baa3) credit rating
  
• Incentive Dictate Behavior™ analysis highlights positive signals for credit holders. Management’s short-term incentive compensation is based on corporate and business unit adjusted EBITDA, corporate and business unit free cash flow, and Titanium Technologies and Fluoroproducts revenue. Meanwhile, long-term compensation is awarded in the form of performance share units and non-qualified stock options and is based on adjusted net income, free cash flow conversion, and total shareholder return.