PQ firms $900 million term loan B at Libor plus 275 bps, tightens OID

By Sara Rosenberg

New York, May 26 – PQ Corp. set pricing on its $900 million seven-year senior secured covenant-lite term loan B (B1/BB-) at Libor plus 275 basis points, the low end of the Libor plus 275 bps to 300 bps talk, according to a market source.

Also, the original issue discount on the term loan was revised to 99.75 from 99.5, the source said.

The term loan still has a 25 bps step-down at 0.5x inside closing date first-lien net leverage, a 0.5% Libor floor and 101 soft call protection for six months.

Citigroup Global Markets Inc. is the lead arranger on the deal. Credit Suisse Securities (USA) LLC is the administrative agent.

Recommitments were scheduled to be due at 5 p.m. ET on Wednesday, the source added.

Allocations are expected on Thursday morning.

Proceeds will be used to refinance a portion of the company’s existing term loan B’s due in 2027.

Closing is expected during the week of May 31.

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

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