Motor Fuel Group begins syndication effort for £800 million equivalent euro and sterling loans

By Paul A. Harris

Portland, Ore., Feb. 21 – Motor Fuel Group began a syndication effort for £800 million equivalent of five-year term loans (expected ratings B2/B) on Wednesday, according to a market source.

Management sessions with lenders are scheduled to continue Thursday.

The deal features a euro-denominated term loan B7 with price talk of Euribor plus 450 basis points to 475 bps, no floor, and an original issue discount of 99.

The facility also features a sterling-denominated term loan B6 with price talk of SOFR plus 575 bps to 600 bps, no floor and OID of 98.

Tranche sizes remain to be determined.

Both tranches feature 101 soft call protection for six months.

Commitments are due March 1.

BNP Paribas is the left physical bookrunner. Deutsche Bank, RBC and SMBC are the joint physical bookrunners.

Barclays, BofA, Citigroup, Goldman Sachs, HSBC, ING and Lloyds are the passive bookrunners.

Proceeds will be used to fund the acquisition of Morrisons’ forecourt portfolio.

The borrower is a forecourt operator and convenience retailer in the United Kingdom.

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