PQ Group Holdings Announces Successful Pricing and Allocation of New Senior Secured Term Loan Facility

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, announced that its indirect, wholly-owned subsidiary, PQ Corporation, has successfully secured commitments for a non-fungible senior secured term loan facility in an aggregate principal amount of $650 million.

Proceeds will be used to redeem the Company’s 6.750% Senior Secured Notes due 2022 (the “2022 Notes”). This refinancing will significantly reduce the Company’s interest expense and extend all material debt maturities to 2025 or later.

The New Term Loan Facility will be issued with an original issue discount of 1.5%, will have interest at a floating rate of LIBOR (with a 1% minimum LIBOR floor) plus 3.0% per annum, and will mature in February 2027, coterminous with the Company’s existing term loan facility. As a result of the refinancing, the Company expects to reduce cash interest by approximately $16 million per annum.

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“We are very pleased with the favorable outcome of this refinancing, which again highlights investors’ confidence in the resiliency of our portfolio and financial strength,” said Mike Crews, PQ Executive Vice President and Chief Financial Officer.

As previously announced, proceeds from this transaction, together with cash on hand, will be used to redeem all of the Company’s existing 2022 Notes at the current call price and to pay related fees and expenses. The closing of the New Term Loan Facility and the redemption of the 2022 Notes are expected to occur on July 22, 2020, subject to customary closing conditions.

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