PQ Group Completes ABL Facility Amendments

PQ Group Holdings

MALVERN, PA — PQ Group Holdings Inc. (NYSE: PQG), a leading integrated and innovative global provider of specialty catalysts, materials, chemicals, and services, today announced that its indirect, wholly-owned subsidiary, PQ Corporation has successfully amended its existing ABL credit agreement.

The Amended ABL Facility was upsized to $250.0 million from $200.0 million with a 25 basis point reduction in the interest rate margin, and was extended by approximately two years to March 2025 (subject to acceleration under certain circumstances).

The Amended ABL Facility will bear interest at a rate equal to the LIBOR rate or the base rate plus a margin of between 1.25%-1.75% or 0.25%-0.75%, respectively.

“We continue to look for opportunities in the current market environment to enhance our financial flexibility,” said Mike Crews, PQ Executive Vice President and Chief Financial Officer.

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“This renewal, combined with our recent term loan extension and repricing, extends maturities, lowers borrowing costs and increases liquidity.”

In February 2020, PQ amended its $947.5 million senior secured term loan facility to reduce the interest rate margin by 25 basis points and extend the maturity by approximately two years to February 2027.

And in March 2020, PQ reset the interest rate on its $500 million notional interest rate caps that extend from July 2020 through July 2022 to 0.84% from 3.50%.

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