International Car Wash resizes tranches in term loans, finalizes terms

By Paul A. Harris

Portland, Ore., Sept. 22 – International Car Wash Group shifted $25 million of proceeds to the first-lien tranche from the second-lien tranche of its $650 million two-part term loan, a market source said.

The seven-year first-lien term loan (B1/B) is upsized to $475 million from $450 million. The eight-year second-lien term loan (Caa1/CCC+) is downsized to $175 million from $200 million.

Pricing on the first-lien term loan is Libor plus 375 basis points, the tight end of the 375 bps to 400 bps spread talk. The deal priced at 99.75, rich to price talk of 99.5. The 1% Libor floor remains unchanged.

Pricing on the second-lien term loan is Libor plus 750 bps, inside of 775 bps to 800 bps spread talk. The reoffer price is 98.5, on top of price talk. The second-lien loan retains its 1% Libor floor.

The first-lien term loan has 101 soft call protection for six months, and the second-lien term loan has hard call protection of 102 in year one and 101 in year two.

A proposed margin step-down was removed from the deal.

The company’s $725 million of senior secured credit facilities also include a $75 million revolver (B1/B).

Goldman Sachs Bank USA, Jefferies LLC, Barclays and Credit Suisse Securities (USA) LLC are the lead banks on the deal.

Proceeds will be used to help fund the buyout of the company by Roark Capital Group from TDR Capital LLP.

Closing is expected in the fourth quarter.

International Car Wash is a car wash operator based in High Wycombe, England.

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