S&P rates Kenan loan CCC

S&P said it assigned Kenan Advantage Group Inc.’s planned $300 million second-lien term loan due 2029. The loan’s 6 recovery rating indicates expectations for negligible (0%-10%; rounded estimate: 0%) recovery in default.

The company plans to use the proceeds from the new debt to refinance its $405 million of senior notes due 2023.

Concurrently, the agency lowered the rating on Kenan’s first-lien revolving credit facility and term loan due 2026 to B- from B, due to the proposed $100 million term loan add-on. The recovery rating is 3, which indicates expectations for meaningful (50%-70%; rounded estimate: 65%) recovery in default.

Kenan’s B issuer rating and stable outlook are unchanged, S&P said.

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