Kenan Advantage discloses talk on $400 million of term loans

By Sara Rosenberg

New York, Aug. 10 – Kenan Advantage Group Inc. released price talk on its $100 million incremental first-lien term loan (B2/B-) and $300 million six-year second-lien term loan (Caa2/CCC) with its lender call on Tuesday, according to a market source.

The incremental first-lien term loan is talked at Libor plus 375 basis points with a 0.75% Libor floor and an original issue discount of 99.5, and the second-lien term loan is talked at Libor plus 725 bps with a 0.75% Libor floor and a discount of 98 to 99, the source said.

The spread and floor on the incremental first-lien term loan matches the existing term loan pricing.

The second-lien term loan has call protection of 102 in year one and 101 in year two.

KeyBanc Capital Markets LLC is the left lead on the first-lien term loan, and Barclays is the left lead and administrative agent on the second-lien term loan.

Commitments are due at noon ET on Aug. 17.

Proceeds will be used to refinance the company’s existing senior notes due 2023.

Along with the term loans, the company is seeking an amendment to its first-lien term loan to permit the proposed transaction and allow for related changes.

Consenting lenders are being offered a 10 bps amendment fee, the source added.

Kenan Advantage is a North Canton, Ohio-based provider of liquid bulk transportation services to the fuels, chemicals, liquid foods and merchant gas markets.

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