PQ Corp. flexes $1.27 billion term loan to Libor plus 250 bps

By Sara Rosenberg

New York, Jan. 17 – PQ Corp. finalized its seven-year senior secured covenant-light term loan (BB-) size at $1,267,000,000 and reduced pricing to Libor plus 250 basis points from talk in the range of Libor plus 275 bps to 300 bps, according to a market source.

At launch, the term loan size was outlined at $1,255,000,000, but the size changed slightly due to the foreign exchange translation of the euros, the source said.

The term loan still has a 0% Libor floor, an original issue discount of 99.75 and 101 soft call protection for six months.

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.

Recommitments are due at noon ET on Thursday, 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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