Moody's gives FR Refuel, loans B3

Moody's Investors Service said it gave first-time ratings to FR Refuel, LLC, including a B3 corporate family rating and B3-PD probability of default rating. The agency also assigned B3 ratings to Refuel's planned $75 million senior secured revolver, $265 million senior secured term loan and $35 million senior secured delayed-draw term loan.

"Refuel's B3 corporate family rating reflects the company's small scale, geographic concentration and relatively limited track record of operating performance given its rapid acquisition driven growth," stated Bill Fahy, a Moody's senior credit officer, in a press release. “Refuel's leverage is high pro forma for its new capital structure with debt to EBITDA of around 6.25 times for 2021 but is expected to improve to below 5.5 times over the next 12 to 18 months as a full year of recent acquisitions are fully realized.”

Proceeds from the proposed $265 million term loan will be used to repay about $200 million of outstanding debt, partially finance the acquisition of two convenience store operators and pay fees and expenses. The $35 million delayed-draw term loan and $75 million revolver will remain undrawn at close.

The outlook is stable.

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