Mister Car Wash talks $220 million in term loans at Libor plus 450 bps

By Sara Rosenberg

New York, Dec. 2 – Mister Car Wash launched on Friday its fungible $180 million add-on term loan and $40 million delayed-draw term loan with price talk of Libor plus 450 basis points with a 1% Libor floor and an original issue discount of 99, according to a market source.

The term loan has 101 soft call protection for six months.

The delayed-draw term loan is available for one year, subject to pro forma net leverage of 4.5 times, and has a fee of half the spread from days 31 to 90 and the full spread thereafter, the source said.

With this transaction, pricing on the company’s existing $196 million term loan will be lifted from Libor plus 400 bps with a 1% Libor floor to match pricing on the add-on term loan.

Jefferies Finance LLC, BMO Capital Markets Corp., UBS Investment Bank and Nomura are the leads on the deal (B1).

Commitments are due on Dec. 12, the source added.

Proceeds will be used to repay revolver borrowings and fund a distribution to sponsor Leonard Green, and the delayed-draw term loan will be used for acquisitions.

Since the original leveraged buyout in September 2014, the company has grown EBITDA 78% to $83 million through the last 12 months to Oct. 31.

Mister Car Wash is a Tucson, Ariz.-based car wash company.

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