PQ Issues $600M in Downsized Deal

PQ Corp. sold $600 million in a downsized junk bond offering.

The Malvern, Pa.-based specialty chemical provider sold $600 million in 8.75% senior secured second-lien notes due 2018 after reducing the size of the issue from $720 million. The bonds priced at par and in line with price talk.

The company increased the size of its credit facility, moving the size of its term loan to $1.22 billion from $1.1 billion. It is also offering a $150 million revolving line of credit. Both the loan and revolver mature in 2017.

PQ plans to use the proceeds to repay existing senior secured credit facilities.

JPMorganCredit SuisseBarclaysJefferies, Mizuho and Morgan Stanley were the bookrunners. Credit Suisse is the lead on the loan package.

PQ is the world’s largest producer of soluble silicates. It was acquired by the Carlyle Group in 2007.

Moody’s Investors Service rated the bonds Caa1 and assigned a B2 rating to the proposed credit facilities. Standard & Poor’s rated the bonds B- and the credit facilities B+. It affirmed its B rating on the company.