PQ Group to pay down about $33.1 million of asset-based loans via IPO

By Susanna Moon

Chicago, Sept. 29 – PQ Group Holdings Inc. plans to repay about $33.1 million of borrowings under PQ Corp.’s asset-based lending facility using proceeds of its initial public offering of common stock.

There is $65 million outstanding under the asset-based facility.

PQ plans to price 29 million shares of its common stock in the IPO at a public offering price of $17.50 per share, with an over-allotment option for another 4.35 million shares, according to a company announcement and an FWP filing with the Securities and Exchange Commission

Proceeds also will be used to redeem PQ Corp.’s $525 million principal amount of floating-rate senior notes due May 1, 2022 with any remaining proceeds to be used for general corporate purposes.

Interest on the floaters is Libor plus 1,075 basis points, with a 1% Libor floor.

Up to 50% of the floaters may be redeemed at a price equal to 106% of par plus accrued interest using proceeds from the IPO. For the remainder, PQ has agreed to redeem the floaters at a price equal to 109% of par plus accrued interest.

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

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