New Issue: Kenan Advantage prices $200 million 8 3/8% six-year notes at par

By Paul A. Harris

Portland, Ore., Dec. 7 - Kenan Advantage Group, Inc. priced a $200 million issue of six-year senior notes (B3/B-/) at par to yield 8 3/8% on Friday, according to market sources.

The yield printed in the middle of the 8¼% to 8½% yield talk.

Goldman Sachs & Co., KeyBanc Capital Markets Inc. and Bank of America Merrill Lynch were the joint bookrunners.

The North Canton, Ohio-based logistics and liquid bulk transportation services provider plans to use the proceeds to pay a $175 million dividend to sponsors Goldman Sachs Capital Partners and Centerbridge Partners and to partially repay term loan debt.

Issuer:	Kenan Advantage Group, Inc.
Amount:	$200 million
Maturity:	Dec. 15, 2018
Securities:	Senior notes
Bookrunners:	Goldman Sachs & Co., KeyBanc Capital Markets Inc. Bank of America Merrill Lynch
Co-managers:	SunTrust Robinson Humphrey Inc., Wells Fargo Securities LLC, Huntington Investment Co. Mizuho Securities USA Inc., PNC Capital Markets LLC, SMBC Nikko Capital Markets Ltd.
Coupon:	8 3/8%
Price:	Par
Yield:	8 3/8%
Spread:	758 bps
Call features:	Make-whole call at Treasuries plus 50 bps until Dec. 15, 2014, then callable at 104.188, 102.094, par on and after Dec. 15, 2016
Equity clawback:	40% at 108.375 until Dec. 15, 2014
Trade date:	Dec. 7
Settlement date:	Dec. 14
Ratings:	Moody's: B3
	Standard & Poor's: B-
Distribution:	Rule 144A and Regulation S for life
Price talk:	8¼% to 8½%
Marketing:	Roadshow

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