Partners Group has taken part in providing a £285 million second lien financing to support the acquisition of MRH by Motor Fuel Group (MFG).
The second lien facility accompanies a £1.2 billion senior financing package underwritten by several investment banks.
The acquisition of MRH, a large UK petrol station and convenience retail operator, means the combined company will operate more than 900 sites covering brands including BP, Esso, Shell, Subway and Costa Coffee. MFG is owned by private equity investor Clayton, Dubilier & Rice.
Partners Group and other undisclosed lenders provided the second lien financing and were advised by Proskauer’s private credit practice. Partner Ben Davis led the Proskauer team alongside associates Emma Bannister and Colin Stewart.
The senior secured facility is worth £1.196 billion and matures in 2025. MFG also has a £230 million revolving credit facility and a £50 million letter of credit facility, both due in 2025, all of which have been assigned a B1 rating by Moodys.
Second lien financing totals £285 million and matures in 2026 and has been assigned a Caa1 rating by Moodys. The lending packages have been supported by a £220 million equity injection to refinance existing debt and fund the acquisition of MRH.
MFG was founded in 2002 in St Albans, UK with 27 sites and has since grown through a combination of organic growth and bolt-on acquisitions. Its acquisition of MRH is currently being investigated by the Competition and Markets Authority.