Moody's rates Shine Holdco loans B1, Caa1

Moody's Investors Service said it assigned a provisional B2 corporate family rating to Shine Holdco III Ltd., the holding company established by private equity firm Roark Capital in connection with its proposed acquisition of International Car Wash Group Ltd.

Moody's also said it assigned a provisional B1 rating to the proposed senior secured first-lien facilities, comprising a $450 million term loan and $75 million revolving credit facility.

The agency also assigned a provisional Caa1 rating to the proposed $200 million second-lien term loan.

The loans will partly fund the acquisition of International Car Wash and will be co-borrowed by Shine Acquisition Co Sarl and Boing US Holdco Inc.

The outlook is stable.

The rating actions follow news that an exclusivity agreement has been signed for a transaction under which Roark will become the majority owner of International Car Wash, Moody's said.

The transaction will see International Car Wash's management retain a minority stake and implies an enterprise value of about £1 billion, the agency said.

Despite modest absolute scale in a highly fragmented market, the company's ratings are supported by its large size relative to most competitors, which results in cost advantages and supports high margins, Moody's said.

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