PQ tightens discount on $650 million term loan B to 98.5

By Sara Rosenberg

New York, June 25 – PQ Corp. modified the original issue discount on its non-fungible $650 million senior secured covenant-lite term loan B due Feb. 7, 2027 to 98.5 from revised talk of 98 and initial talk in the range of 97 to 98, according to a market source.

Also, the 101 soft call protection on the term loan was shortened to six months from one year, the source said.

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

Previously in syndication, the term loan was upsized from $450 million as the company was no longer contemplating getting $200 million of other unsecured debt.

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.

Recommitments were scheduled to be due at noon ET on Thursday, 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.

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

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