PQ Group Holdings Announces Successful Pricing and Allocation of New Senior Secured Term Loan Facility
June 25 2020 - 4:55PM
Business Wire
PQ Group Holdings Inc. (NYSE:PQG), a leading integrated and
innovative global provider of specialty catalysts, materials,
chemicals and services, announced today that its indirect, wholly
owned subsidiary, PQ Corporation (the “Company”), has successfully
secured commitments for a non-fungible senior secured term loan
facility (“New 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.
“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.
Investor Contact: Nahla A. Azmy (610) 651-4561
Nahla.Azmy@pqcorp.com
About PQ Group Holdings Inc.
PQ Group Holdings Inc. and subsidiaries is a leading integrated
and innovative global provider of specialty catalysts, materials,
chemicals and services. We support customers globally through our
strategically located network of manufacturing facilities. We
believe that our products, which are predominantly inorganic, and
services contribute to improving the sustainability of the
environment.
We have four uniquely positioned specialty businesses:
Refining Services provides sulfuric acid recycling to the
North American refining industry; Catalysts serves the
packaging and engineering plastics and the global refining,
petrochemical and emissions control industries; Performance
Materials produces transportation reflective safety markings
for roads and airports; and Performance Chemicals supplies
diverse product end uses, including personal and industrial
cleaning products, fuel-efficient tires, surface coatings, and food
and beverage products.
We serve over 4,000 customers globally across many end uses and
operate over 70 manufacturing facilities which are strategically
located across six continents. For more information, see our
website at https://www.pqcorp.com.
Note on Forward-Looking Statements
Some of the information contained in this press release
constitutes “forward-looking statements.” Forward-looking
statements can be identified by words such as “anticipates,”
“intends,” “plans,” “seeks,” “believes,” “estimates,” “expects,”
“projects” and similar references to future periods.
Forward-looking statements are based on our current expectations
and assumptions regarding our business, the economy and other
future conditions. Because forward-looking statements relate to the
future, they are subject to inherent uncertainties, risks and
changes in circumstances that are difficult to predict. Examples of
forward-looking statements include, but are not limited to,
statements regarding the closing of the New Term Loan Facility and
the application of the proceeds thereof, together with cash on
hand, to redeem the 2022 Notes and to pay related fees and
expenses. Our actual results may differ materially from those
contemplated by the forward-looking statements. We caution you,
therefore, against relying on any of these forward-looking
statements. They are neither statements of historical fact nor
guarantees or assurances of future performance. Important factors
that could cause actual results to differ materially from those in
the forward-looking statements include, but are not limited to,
regional, national or global political, economic, business,
competitive, market and regulatory conditions, including the
ongoing COVID-19 pandemic, tariffs and trade disputes, currency
exchange rates and other factors, including those described in the
sections titled “Risk Factors” and “Management Discussion &
Analysis of Financial Condition and Results of Operations” in our
filings with the SEC, which are available on the SEC’s website at
www.sec.gov. These forward-looking statements speak only as of the
date of this release. Factors or events that could cause our actual
results to differ may emerge from time to time, and it is not
possible for us to predict all of them. We undertake no obligation
to update any forward-looking statement, whether as a result of new
information, future developments or otherwise, except as may be
required by applicable law.
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version on businesswire.com: https://www.businesswire.com/news/home/20200625005894/en/
Investors: Nahla A. Azmy (610) 651-4561
Nahla.Azmy@pqcorp.com
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