Mister Car Wash Successfully Completes Debt Refinancing
01 Abril 2024 - 4:00AM
Business Wire
Mister Car Wash, Inc. (the “Company”) (NYSE: MCW) announced the
completion of a series of related transactions in support of a
comprehensive plan to refinance its capital structure. Through
these transactions, the Company extended its debt maturities and
improved liquidity to support continued Company growth.
Summary of Transactions
- Upsized, Amended & Extended the $901 million Term Loan B to
$925 million now due in 2031 and removed a 0.10% credit spread
adjustment to the SOFR benchmark for all available interest
periods
- Upsized, Amended & Extended the $150 million Revolving
Credit Facility to $300 million now due in 2029, removed a 0.10%
credit spread adjustment to the SOFR benchmark for all available
interest periods and reduced the cost of borrowings under the
facility
- Proceeds of the transaction were used to refinance the existing
Mister Car Wash Term Loan B due in 2026 and the existing Mister Car
Wash Revolving Credit Facility due in 2026
- The transactions extend Mister Car Wash’s debt maturities and
increase available liquidity in line with Company growth
“We are thrilled with the execution and outcome of our recent
debt amendment and extension. The transactions were well
oversubscribed and priced favorably to our current deals. Both are
a testament to Mister’s strong business and reputation in the
capital markets. The transaction provides some added flexibility
and liquidity to help drive our planned Mister brand expansion and
profitable growth,” said Jed Gold, Chief Financial Officer at
Mister Car Wash.
The $925 million Term Loan B facility, privately placed with
institutional investors, will accrue interest at an annual rate of
SOFR+300, subject to a leverage-based pricing grid, and will mature
on March 27, 2031.
The $300 million Revolving Credit Facility will mature on March
27, 2029.
The Company will provide more details about the terms and
conditions in a Form 8-K filing with the Securities and Exchange
Commission (SEC).
Forward-Looking Statements
This press release includes “forward-looking statements” within
the meaning of the Private Securities Litigation Reform Act of
1995. We intend such forward-looking statements to be covered by
the safe harbor provisions for forward-looking statements contained
in Section 27A of the Securities Act of 1933, as amended and
Section 21E of the Securities Exchange Act of 1934, as amended. All
statements contained in this press release other than statements of
historical fact, including, without limitation, statements
regarding Mister Car Wash’s expansion efforts and expected growth
and financial and operational results for fiscal 2024 are
forward-looking statements. Words including “anticipate,”
“believe,” “continue,” “could,” “estimate,” “expect,” “intend,”
“may,” “might,” “plan,” “potential,” “predict,” “seek,” or
“should,” or the negative thereof or other variations thereon or
comparable terminology are intended to identify forward-looking
statements, though not all forward-looking statements use these
words or expressions. In addition, any statements or information
that refer to expectations, beliefs, plans, projections,
objectives, performance or other characterizations of future events
or circumstances, including any underlying assumptions, are
forward-looking.
These forward-looking statements are based on management’s
current expectations and beliefs. These statements are neither
promises nor guarantees, but involve known and unknown risks,
uncertainties and other important factors that may cause the
Company’s actual results, performance or achievements to be
materially different from those expressed or implied by the
forward-looking statements, including, but not limited to: our
inability to attract new customers, retain existing customers and
maintain or grow the number of UWC members, which could adversely
affect our business, financial condition and results of operations
and rate of growth; our failure to acquire, or open and operate new
locations in a timely and cost-effective manner, and enter into new
markets or leverage new technologies, may materially and adversely
affect our competitive advantage or financial performance; our
inability to successfully implement our growth strategies on a
timely basis or at all; we are subject to a number of risks and
regulations related to credit card and debit card payments we
accept; an overall decline in the health of the economy and other
factors impacting consumer spending, such as natural disasters and
fluctuations in inflation, may affect consumer purchases, reduce
demand for our services and materially and adversely affect our
business, results of operations and financial condition; inflation,
supply chain disruption and other increased operating costs could
materially and adversely affect our results of operations; our
locations may experience difficulty hiring and retaining qualified
personnel, resulting in higher labor costs; we lease or sublease
the land and buildings where a number of our locations are
situated, which could expose us to possible liabilities and losses;
our indebtedness could adversely affect our financial health and
competitive position; our business is subject to various laws and
regulations and changes in such laws and regulations, or failure to
comply with existing or future laws and regulations, may result in
litigation, investigation or claims by third parties or employees
that could adversely affect our business; our locations are subject
to certain environmental laws and regulations; we are subject to
data security and privacy risks that could negatively impact our
results of operations or reputation; we may be unable to adequately
protect, and we may incur significant costs in enforcing or
defending, our intellectual property and other proprietary rights;
stockholders’ ability to influence corporate matters may be limited
because a small number of stockholders beneficially own a
substantial amount of our common stock and continue to have
substantial control over us; our stock price may be volatile or may
decline regardless of our operating performance, resulting in
substantial losses for investors purchasing shares of our common
stock; and the other important factors discussed under the caption
“Risk Factors” in the Company’s Annual Report on Form 10-K for the
fiscal year ended December 31, 2023, as such factors may be updated
from time to time in its other filings with the SEC accessible on
the SEC’s website at www.sec.gov and the Investors Relations
section of the Company’s website at www.mistercarwash.com.
Any forward-looking statement that the Company makes in this
press release speaks only as of the date hereof. Except as required
by law, the Company does not undertake any obligation to update or
revise, or to publicly announce any update or revision to, any of
the forward-looking statements, whether as a result of new
information, future events or otherwise.
About Mister Car Wash® | Inspiring People to Shine®
Headquartered in Tucson, Arizona, Mister Car Wash, Inc. (NYSE:
MCW) operates over 450 locations and has the largest car wash
subscription program in North America. With a passionate team of
professionals, advanced technology, and a commitment to exceptional
customer experiences, Mister Car Wash is dedicated to providing a
clean, shiny, and dry vehicle every time. The Mister brand is
deeply rooted in delivering quality service, fostering
friendliness, and demonstrating a genuine commitment to the
communities it serves while prioritizing responsible environmental
practices and resource management. To learn more visit
www.mistercarwash.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20240401144302/en/
John Rouleau ICR IR@mistercarwash.com
Mister Car Wash (NYSE:MCW)
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