Kenan Advantage firms U.S. and Canadian term B sizes, trims pricing

By Sara Rosenberg

New York, Jan. 18 – Kenan Advantage Group Inc. finalized its five-year covenant-lite term loan B as a $1.48 billion U.S. piece and a $46.1 million equivalent Canadian piece (C$62.3 million), from talk at launch of $1.525 billion equivalent U.S. and Canadian term loan B with tranching to be determined, according to a market source.

Additionally, pricing on the term loan was reduced to SOFR plus 375 basis points from talk in the range of SOFR plus 400 bps to 425 bps and the original issue discount was tightened to 99.5 from 99, the source said.

As before, the term loan has a 0% floor, 101 soft call protection for six months and amortization of 1% per annum.

The company’s $1.7261 billion of credit facilities (B2/B) also include a $200 million five-year revolver with a springing maturity 91 days in advance of the term loan B.

KeyBanc Capital Markets, Citizens, CIBC, ING, Barclays, MUFG, Regions, UBS Investment Bank and Fifth Third are the joint lead arrangers on the deal.

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

Proceeds will be used to extend existing credit facilities from March 2026 and to pay related fees and expenses.

Kenan Advantage, owned by OMERS, 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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