Kenan Advantage flexes $900 million of term debt to Libor plus 300 bps

By Sara Rosenberg

New York, July 22 – Kenan Advantage Group Inc. trimmed pricing on its $750 million term loan and $150 million delayed-draw term loan to Libor plus 300 basis points from Libor plus 350 bps, according to a market source.

The term debt still has a 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months.

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

Recommitments were due at 1 p.m. ET on Wednesday, the source said.

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

Proceeds from the credit facility will be used to help fund the buyout of the company by Omers Private Equity from Goldman Sachs Capital Partners and Centerbridge Partners. The delayed-draw term loan can only be used for permitted acquisitions.

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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