PQ Corp. launches $920.8 million and €281.2 million term loans

By Sara Rosenberg

New York, July 26 – PQ Corp. launched on its lender call a $920.8 million senior secured covenant-light term loan (B2/B+) due Nov. 4, 2022 and a €281.2 million senior secured covenant-light term loan (B2/B+) due Nov. 4, 2022, according to a market source.

Price talk on the U.S. term loan is Libor plus 350 basis points with a 25 bps step-down at 4.75 times total net leverage, a 1% Libor floor and a par issue price, and talk on the euro term loan is Euribor plus 325 bps with a 25 bps step-down at 4.75 times total net leverage, a 1% floor and a par issue price, the source said.

Both term loans have 101 soft call protection for six months and amortization of 1% per annum.

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

Proceeds will be used to reprice an existing U.S. term loan down from Libor plus 425 bps with a 1% Libor floor and an existing euro term loan down from Euribor plus 400 bps with a 1% floor.

Commitments from existing lenders are due at noon ET on Aug. 2 and from new lenders are due at noon ET on Aug. 3, the source added.

Closing is expected during the week of Aug. 7.

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

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