PQ raises term loan B to $650 million, firms discount at 98

By Sara Rosenberg

New York, June 24 – PQ Corp. upsized its non-fungible senior secured covenant-lite term loan B due Feb. 7, 2027 to $650 million from $450 million and set the original issue discount at 98, the tight end of the 97 to 98 talk, according to a market source.

Pricing on the term loan remained at Libor plus 300 basis points with a 1% Libor floor.

The term loan has 101 soft call protection for one year.

Amortization is 1% per annum.

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 noon ET on Thursday, accelerated from 5 p.m. ET on Thursday, with pricing and allocations thereafter, the source added.

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

As a result of the term loan upsizing, the company is no longer contemplating getting $200 million of other unsecured debt for the refinancing.

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

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