PQ Corp. lowers pricing on $920.8 million loan to Libor plus 325 bps

By Sara Rosenberg

New York, Aug. 2 – PQ Corp. trimmed pricing on its $920.8 million senior secured covenant-light term loan (B2/B+) due Nov. 4, 2022 to Libor plus 325 basis points from Libor plus 350 bps, according to a market source.

Pricing on the €281.2 million senior secured covenant-light term loan (B2/B+) due Nov. 4, 2022 is unchanged at Euribor plus 325 bps.

The company also reduced the Libor floor on the U.S. term loan to 0% from 1%, lowered the floor on the euro term loan to 0.75% from 1% and removed the 25 bps step-down at 4.75 times total net leverage from both loans, the source said.

The term loans are still offered at par and have 101 soft call protection for six months.

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

Recommitments are due at noon ET on Thursday, the source added.

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.

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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