PQ talks $1.1 billion first-lien term loan at Libor plus 425 bps

By Sara Rosenberg

New York, Oct. 12 - PQ Corp. is shopping its $1.1 billion first-lien term loan at talk of Libor plus 425 basis points with a 1.25% Libor floor and an original issue discount of 99, according to a market source.

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

The company's $1.25 billion 41/2-year credit facility (B2/B+) also provides for a $150 million revolver.

Included in the credit facility is a maximum net first-lien leverage covenant.

Credit Suisse Securities (USA) LLC is the lead bank on the deal that launched with a bank meeting on Thursday afternoon.

Proceeds will be used to refinance existing bank debt.

Commitments are due on Oct. 25, the source added.

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

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