Moody's rates Kenan Advantage loan Ba3

Moody's Investors Service said it assigned Kenan Advantage Group, Inc.'s corporate family rating of Ba3 and probability of default rating of B1. Moody's also said it assigned a rating of Ba3 to the planned of $450 million senior secured credit facility.

The outlook is stable.

The credit facility comprises a $250 million term loan due 2016, a $125 million delayed-draw term loan also due 2016 and a $75 million revolving credit that expires 2015.

Both the revolving credit and delayed draw term loan will be un-drawn on close, Moody's said.

Proceeds from the $250 million term loan will be used, in combination with about $470 million of equity, to fund the purchase of Kenan Advantage by private equity sponsors Goldman Sachs Capital Partners and Centerbridge Partners.

The ratings consider Kenan Advantage's leading position as a provider of liquid bulk transportation services and logistics to the fuels, chemical and food markets with nationwide service, Moody's said, and the relative stability of earnings and cash flow that the company has experienced throughout the economic cycle.

The ratings also takes into account a sizeable, but manageable amount of debt that the company carries resulting from the acquisition, the agency said.

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