Penfund invests additional US $9.8M in Leonard Green’s Mister Car Wash

Penfund, through Penfund Capital Fund V, has invested US $9.8 million in Mister Car Wash (MCW) as part of a small club of lenders providing a new US $225 million second lien credit facility (all figures in US dollars).

The proceeds of this facility, together with the proceeds of a new $800 million first lien term loan, have been used to refinance MCW’s existing debt and to pay a distribution to shareholders (dividend recap). Senior lenders also provided a new $75 million revolving credit facility and $40 million delayed draw term loan.

Tucson, Arizona based Mister Car Wash is the largest car wash operator in the United States, operating 300 car washes and 32 oil change expresses across 21 states.

In August 2014, Leonard Green and Partners acquired MCW from ONCAP for over $400 million (ONCAP realized total proceeds of $458 million from the sale of its majority stake).

Penfund IV invested $15.1 million in unsecured debt and equity as part of MCW acquisition by Leonard Green.

With the closing of dividend recap, Leonard Green and other shareholders have reportedly recouped all their equity investments in MCW.

photo credit: Mister Car Wasg

News Release

Penfund Announces Follow-on Investment in Mister Car Wash

TORONTO, Ontario (May 23, 2019) – Penfund, an independent provider of junior capital to North American middle market companies, announced today the completion of a follow-on investment in Mister Car Wash (“MCW” or the “Company”) as part of a small club of lenders providing a new US$225 million second lien credit facility.

The proceeds of this facility, together with the proceeds of a new US$800 million first lien term loan, have been used to refinance MCW’s existing debt and to pay a distribution to shareholders. Senior lenders also provided a new US$75 million revolving credit facility and US$40 million delayed draw term loan.

Headquartered in Tucson, Arizona, MCW is the largest car wash operator in the United States. Operating 300 car washes and 32 oil change expresses across 21 states, MCW has a reputation for providing high quality service at an affordable price. Innovative programs, such as the subscription-based Unlimited Wash Club, increase customer value and enhance the customer experience. The Company focuses on the conveyor wash segment and washes over 45 million cars annually.

Jeremy Thompson, a partner at Penfund, stated, “Penfund is excited to support Leonard Green and its investment in Mister Car Wash as both teams work to continue their exceptional track records. The car wash industry remains highly fragmented leaving significant white space for MCW to continue executing its growth strategy while simultaneously creating value for customers through network enhancements like the Unlimited Wash Club program.”

About Mister Car Wash

Mister Car Wash is the largest car wash company in the United States operating 300 car washes and 32 oil change expresses (co-located with car washes). The Company’s network focuses on express conveyor washes but also offers full-service washes.

Website: www.mistercarwash.com

About Leonard Green & Partners

Leonard Green & Partners, L.P. (“LGP”) is a leading private equity investment firm founded in 1989 and based in Los Angeles. LGP partners with experienced management teams and often with founders to invest in market-leading companies. Since inception, the firm has invested in over 90 companies in the form of traditional buyouts, going-private transactions, recapitalizations, growth equity, and selective public equity and debt positions. LGP primarily focus on companies providing services, including consumer, business, and healthcare services, as well as retail, distribution, and industrials. LGP’s most recent fund, Green Equity Investors VII, L.P. (“GEI VII”), closed in 2016 with US$9.6 billion of committed capital.

Website: www.leonardgreen.com

About Penfund

Penfund is a leading provider of junior capital to middle market companies throughout North America. The firm is owned by its management team and is currently investing its most recently established fund, Penfund Capital Fund VI. Penfund manages funds sourced from pension funds, insurance companies, banks, family offices and high-net-worth individuals located in Canada, the United States, the Middle East and Europe. Penfund has invested more than $3 billion in over 225 companies since its establishment. Assets under management are approximately $1.8 billion.

Website: www.penfund.com

Ted Liu

Ted Liu, M.Sc. (Mining, Queen's), MBA (Finance, Toronto), is the Editor of Private Capital Journal, CanadaMetals.ca, TechWire.ca, and the former Editor of Canadian Private Equity. Ted has been passionately tracking Canadian private capital industry since 1992, having most recently served as Research Director for The Canadian Venture Capital and Private Equity Association (CVCA).

Ted is the architect of CVCA infobase, and is the architect of CPE Media's Financings.ca, Canada's most sophisticated and advanced all private capital and public market financing database.