PQ Corp. launches $1.26 billion term loan at Libor plus 275-300 bps

By Sara Rosenberg

New York, Jan. 9 – PQ Corp. launched on its lender call on Tuesday a $1,255,000,000 seven-year senior secured covenant-light term loan with price talk of Libor plus 275 basis points to 300 bps with a 0% Libor floor and an original issue discount of 99.75, according to a market source.

The term loan has 101 soft call protection for six months and amortization of 1% per annum, the source said.

Negative covenants are substantially similar to the existing senior secured term loan with modifications to refresh the incremental basket and reset certain incurrence ratio covenants, the source continued.

Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Morgan Stanley Senior Funding Inc., J.P. Morgan Securities LLC, Jefferies LLC, Goldman Sachs Bank USA, Deutsche Bank Securities Inc. and KeyBanc Capital Markets are the joint lead arrangers on the deal. Credit Suisse is the administrative agent.

Commitments are due at 5 p.m. ET on Jan. 17, the source added.

Proceeds will be used to refinance existing U.S. and euro term loans.

Closing is expected on Feb. 8.

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

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