Kenan Advantage to launch $700 million credit facility on Thursday

By Sara Rosenberg

New York, June 20 - Kenan Advantage Group is scheduled to hold a conference call on Thursday morning to launch a $700 million credit facility, according to a market source.

KeyBanc Capital Markets is the lead arranger, bookrunner and administrative agent on the deal.

The facility consists of a $100 million revolver, a $450 million term loan B and a $150 million delayed-draw term loan.

Pricing on the term loan B and delayed-draw term loan is Libor plus 325 basis points with a 1.25% Libor floor, in line with existing term loan pricing.

The company's existing facility, which is essentially just being upsized through this transaction, consists of a $100 million revolver, a $370 million term loan B and a $125 million delayed-draw term loan.

With this new deal, the term loan will retain its existing tenor and the delayed-draw term loan will be renewed for an 18-month duration and retain its "use or lose" provision, the source said.

Kenan is a North Canton, Ohio-based logistics and liquid bulk transportation services provider to the fuels, chemical and food end-markets.

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