Research Update: Petrol Station Operator Motor Fuel Group's Parent CD&R Firefly 4 Ltd. Rated 'B'; Outlook Negative

CD&R Firefly 4 Ltd., the parent to U.K.-based petrol station operator Motor Fuel Group (MFG), is raising a £1,196 million term loan facility B, £285 million second lien facility, £230 million revolving credit facility, and £50 million letter of credit facility to finance the acquisition of U.K. fuel retailer MRH and refinance in full the debt of both companies. We are assigning our 'B' long-term issuer credit rating to CD&R Firefly 4 Ltd., our 'B' rating to the proposed senior secured facilities, and our 'CCC+' rating to the second lien debt. The negative outlook reflects our view that MFG's pro forma adjusted debt to EBITDA of 7.4x in 2018 leaves minimal headroom under the current rating to withstand any unexpected

...+ CD&R Firefly 4 Ltd., the parent to U.K.-based petrol station operator Motor Fuel Group (MFG), is raising a ú1,196 million term loan facility B, ú285 million second lien facility, ú230 million revolving credit facility, and ú50 million letter of credit facility to finance the acquisition of U.K. fuel retailer MRH and refinance in full the debt of both companies. + We are assigning our 'B' long-term issuer credit rating to CD&R Firefly 4 Ltd., our 'B' rating to the proposed senior secured facilities, and our '###+' rating to the second lien debt. + The negative outlook reflects our view that MFG's pro forma adjusted debt to EBITDA of 7.4x in 2018 leaves minimal headroom under the current rating to withstand any unexpected operating weakness....

Research Update