PQ Holdings to repay some 8¾% second-lien notes with IPO proceeds

By Tali Rackner

Norfolk, Va., Feb. 11 - PQ Holdings Inc. plans to repay certain debt under its $600 million of 8¾% second-lien senior secured notes due Nov. 1, 2018 with the proceeds from its initial public offering of common stock, according to an S-1 filed with the Securities and Exchange Commission.

Until Nov. 1, 2014, the company may redeem up to 40% of the notes at 108.75 plus accrued interest using the proceeds of certain equity offerings, including this IPO, or at par plus a make-whole premium and accrued interest.

Proceeds may also be used to repay term loan debt under its senior secured credit facilities, to pay related premiums, accrued interest and expenses and to pay a fee to each of Ineos Capital Partners and an affiliate of Carlyle Group to terminate their respective consulting agreements.

PQ Holdings is a Chula Vista, Calif.-based development-stage company that focuses on providing a mobile line of car wash and auto detailing services.

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