Research Update: CD&R Firefly 4 Ltd. (Motor Fuel Group) Outlook Revised To Positive On Proposed Debt Refinancing; Ratings Affirmed

U.K.-based CD&R Firefly 4 Ltd. (Motor Fuel Group or MFG) intends to amend and extend its drawn first-lien debt maturities to 2028 and pay down its £308 million second-lien loans, using its £287 million cash reported as at Dec. 31, 2022, along with the cash proceeds from the asset disposals as mandated by the Competition and Markets Authority (CMA). The group registered a strong 2022 amid a tough macro environment, with S&P Global Ratings-adjusted 2022 EBITDA estimated at about £415 million, a 22% increase from 2021. We anticipate that the resilient performance will continue over the next two years. Although we forecast that EBITDA will drop in 2023 because of the sale of 87 fuel stations, we think that the

...- U.K.-based CD&R Firefly 4 Ltd. (Motor Fuel Group or MFG) intends to amend and extend its drawn first-lien debt maturities to 2028 and pay down its ú308 million second-lien loans, using its ú287 million cash reported as at Dec. 31, 2022, along with the cash proceeds from the asset disposals as mandated by the Competition and Markets Authority (CMA). - The group registered a strong 2022 amid a tough macro environment, with S&P Global Ratings-adjusted 2022 EBITDA estimated at about ú415 million, a 22% increase from 2021. We anticipate that the resilient performance will continue over the next two years. Although we forecast that EBITDA will drop in 2023 because of the sale of 87 fuel stations, we think that the group's earning expansion plans and lower debt will lead to sustainable improvements in its credit metrics commensurate with a higher rating. - We therefore revised our outlook on MFG to positive and affirmed our long-term issuer credit rating and first-lien issue ratings at 'B'....

Research Update