Mister Car Wash upsizes term loan, cuts pricing to Libor plus 425 bps

By Sara Rosenberg

New York, Dec. 12 – Mister Car Wash lifted its fungible funded add-on term loan to $200 million from $180 million, according to a market source.

Also, pricing on the funded add-on term loan and a $40 million delayed-draw term loan was reduced to Libor plus 425 basis points from Libor plus 450 bps, and a step-down was added to Libor plus 400 bps at 4 times first-lien gross leverage, the source said.

In addition, the original issue discount on the add-on and delayed-draw term loans was changed to 99.25 from 99, the source said.

The loans still have a 1% Libor floor and 101 soft call protection for six months.

As before, 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.

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.

Recommitments were scheduled to be due at 3 p.m. ET on Monday, the source continued.

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.

The funds from the add-on term loan upsizing will be used to reduce a privately placed add-on unsecured notes offering to $57.5 million from $67.5 million, bringing the total amount of notes outstanding to $145 million, and to add cash to the balance sheet.

EBITDA is $85 million through the last 12 months to Nov. 30, up from $83 million through the last 12 months to Oct. 31.

Net first-lien leverage is 4.5 times, unchanged from launch of the new loans, and net total leverage is 6.2 times, down from 6.4 times at launch of the new loans, the source added.

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

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