New Issue: Kenan prices $150 million tap of its 8 3/8% notes due 2018 at 105 to yield 6½%

By Paul A. Harris

Portland, Ore., Dec. 12 - Kenan Advantage Group, Inc. priced a $150 million add-on to its 8 3/8% senior notes due Dec. 15, 2018 (B3/B-/) at 105 to yield 6½% on Thursday, according to a market source.

The reoffer price came at the rich end of the 104.5 to 105 price talk.

Goldman Sachs & Co., KeyBanc Capital Markets, Wells Fargo Securities LLC and SunTrust Robinson Humphrey Inc. were the joint bookrunners for the quick-to-market sale.

The North Canton, Ohio-based logistics and liquid bulk transportation services provider plans to use the proceeds to repay debt.

Issuer:	Kenan Advantage Group, Inc.
Face amount:	$150 million
Proceeds:	$158 million
Maturity:	Dec. 15, 2018
Security description:	Add-on to 8 3/8% senior notes due Dec. 15, 2018
Bookrunners:	Goldman Sachs & Co., KeyBanc Capital Markets, Wells Fargo Securities LLC, SunTrust Robinson Humphrey Inc.
Coupon:	8 3/8%
Price:	105
Yield:	6½%
First call:	Dec. 15, 2014 at 104.188
Trade date:	Dec. 12
Settlement date:	Dec. 14 with accrued interest
Ratings:	Moody's: B3
	Standard & Poor's: B-
Price talk:	104.5 to 105
Marketing:	Quick to market
Original issue:	$200 million priced at par in December 2012
Total issue size:	$350 million

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