Kenan lifts first-lien loan to $115 million, firms second-lien OID

By Sara Rosenberg

New York, Aug. 18 – Kenan Advantage Group Inc. upsized its incremental first-lien term loan to $115 million from $100 million, according to a market source.

Also, the company finalized the original issue discount on its $300 million six-year second-lien term loan at 98, the wide end of the 98 to 99 talk, the source said.

Pricing on the incremental first-lien term loan remained at Libor plus 375 basis points with a 0.75% Libor floor and an original issue discount of 99.5, and pricing on the second-lien term loan remained at Libor plus 725 bps with a 0.75% Libor floor.

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

Recommitments were scheduled to be due at noon ET on Wednesday, the source added.

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.

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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