By Paul A. Harris
Portland, Ore., July 23 – Kenan Advantage Group Inc. priced a $405 million issue of eight-year senior notes (B3/B-) at par to yield 7 7/8% on Thursday, according to an informed source.
The yield printed in the middle of the 7¾% to 8% yield talk.
Goldman Sachs & Co. was the left bookrunner. KeyBank Capital Markets was the joint bookrunner.
Proceeds, together with sponsor equity and equity from certain members of management, and borrowings under the senior secured credit facilities, will be used to finance the buyout of the company by Omers Private Equity from Goldman Sachs Capital Partners and Centerbridge Partners.
The issuing entity is special purpose vehicle OPE KAG Finance Sub Inc.
Kenan Advantage is a North Canton, Ohio-based provider of liquid bulk transportation services.
| Issuer: | OPE KAG Finance Sub Inc.
|
| Amount: | $405 million
|
| Maturity: | July 31, 2023
|
| Securities: | Senior notes
|
| Left bookrunner: | Goldman Sachs & Co.
|
| Joint bookrunner: | KeyBanc Capital Markets
|
| Co-managers: | Mizuho Securities, SMBC Nikko
|
| Coupon: | 7 7/8%
|
| Price: | Par
|
| Yield: | 7 7/8%
|
| First call: | July 31, 2018 at 103.938
|
| Trade date: | July 23
|
| Settlement date: | July 31
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: B-
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 7¾% to 8%
|
| Marketing: | Roadshow
|
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