Kenan Advantage talks $900 million of term debt at Libor plus 350 bps

By Sara Rosenberg

New York, July 13 – Kenan Advantage Group Inc. launched on Monday its $750 million term loan and $150 million delayed-draw term loan with price talk of Libor plus 350 basis points with a 1% Libor floor and an original issue discount of 99.5, according to a market source.

The term debt has 101 soft call protection for six months, the source said.

The delayed-draw term loan can only be used for permitted acquisitions.

Of the total delayed-draw term loan amount, some is being sold as a strip with the funded term loan and some is being held by relationship banks, the source added.

The company’s $1,025,000,000 senior secured credit facility (Ba3/BB) also includes a $125 million revolver.

KeyBanc Capital Markets LLC and Goldman Sachs Bank USA are the leads on the deal.

Proceeds will be used to help fund the buyout of the company by Omers Private Equity from Goldman Sachs Capital Partners and Centerbridge Partners.

Other funds for the transaction are expected to come from $405 million of bonds.

Closing is expected in the third quarter.

Kenan Advantage 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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