PQ launches $450 million term loan B at Libor plus 300 bps

By Sara Rosenberg

New York, June 22 – PQ Corp. held a lender call at 2:30 p.m. ET on Monday to launch a non-fungible $450 million senior secured covenant-lite term loan B due Feb. 7, 2027 that is talked at Libor plus 300 basis points with a 1% Libor floor and an original issue discount of 97 to 98, according to a market source.

The term loan has 101 soft call protection for one year, the source said.

Amortization is 1% per annum.

Expected term loan ratings are B1/BB-.

Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Morgan Stanley Senior Funding Inc., J.P. Morgan Securities LLC, Jefferies LLC, Goldman Sachs Bank USA, Deutsche Bank Securities Inc., KeyBanc Capital Markets, BofA Securities, Inc. and SunTrust Robinson Humphrey Inc. are the joint lead arrangers on the deal. Credit Suisse is the administrative agent.

Commitments are due at 5 p.m. ET on Thursday, the source added.

Proceeds will be used with $200 million of other unsecured debt to refinance the company’s existing $625 million 6¾% senior secured notes due 2022 at the current call price.

PQ is a Malvern, Pa.-based producer of specialty inorganic performance chemicals and catalysts.

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