BW Gasoline & Comfort Holdings, LLC — Moody’s upgrades BW Gasoline & Comfort’s CFR to B1, charges financial institution credit score facility B1

Score Motion: Moody’s upgrades BW Gasoline & Comfort’s CFR to B1, charges financial institution credit score facility B1Global Credit score Analysis – 08 Mar 2021New York, March 08, 2021 — Moody’s Buyers Service, (“Moody’s”) upgraded the scores of BW Gasoline & Comfort Holdings, LLC (“BW Gasoline & Comfort”, dba “Yesway”) together with its company household ranking to B1 from B2, likelihood of default ranking to B2-PD from B3-PD, and its senior secured financial institution credit score facility ranking to B1 from B2. On the similar time, Moody’s assigned a B1 to the corporate’s deliberate $535 million senior secured financial institution credit score facility. The scores on the present financial institution credit score facility can be withdrawn when the transaction closes. The ranking outlook is steady.The improve displays BW Gasoline & Comfort’s strong working efficiency in a difficult 2020, good credit score metrics over the following two years — leverage will stay under 5.0x and curiosity protection can be above 3.0x — and the corporate’s excellent liquidity. Moody’s forecasts the corporate’s credit score metrics will stay acceptable for the B1 ranking whilst the corporate continues to develop via acquisitions.Proceeds from the deliberate $535 million financial institution credit score facility — together with a 5-year $125 million revolver (undrawn at closing) and 7-year $410 million time period mortgage — can be used to refinance the corporate’s present time period mortgage, put money on the stability sheet and pay charges and bills. The transaction extends the corporate’s maturity profile and improves its liquidity with a bigger dedicated revolver and decrease curiosity expense.Upgrades:..Issuer: BW Gasoline & Comfort Holdings, LLC…. Likelihood of Default Score, Upgraded to B2-PD from B3-PD…. Company Household Score, Upgraded to B1 from B2….Senior Secured Financial institution Credit score Facility, Upgraded to B1 (LGD3) from B2 (LGD3)Assignments:..Issuer: BW Gasoline & Comfort Holdings, LLC….GTD Senior Secured Time period Mortgage , Assigned B1 (LGD3)….GTD Senior Secured Revolving Credit score Facility, Assigned B1 (LGD3)Outlook Actions:..Issuer: BW Gasoline & Comfort Holdings, LLC….Outlook, Modified To Secure From PositiveRATINGS RATIONALEBW Gasoline & Comfort’s credit score profile is constrained by its small scale by way of variety of shops and absolute ranges of EBITDA. With simply over 400 shops, the corporate is likely one of the smaller rated comfort shops. The corporate’s small dimension and focus in Texas, New Mexico and Oklahoma exposes it to regional financial swings. The ranking additionally displays governance concerns, significantly the non-public fairness possession and potential for continued acquisition exercise in a consolidating business.The corporate’s credit score profile advantages from its average leverage and good curiosity protection. BW Gasoline & Comfort’s mixed merchandise gross revenue margins has benefitted from the 2019 acquisition of Allsup’s — pushed by a powerful foodservice platform and good gasoline margins on a cents per gallon foundation (CPG) relative to the business. Allsup’s publicity to the expansion within the Permian Basin is useful to each whole gallon volumes in addition to CPG attributable to a good combine shift towards greater margin diesel. BW Gasoline & Comfort’s mixture of merchandise vs gasoline gross revenue is weighted extra in the direction of merchandise at about 60% vs gasoline at 40% which we anticipate will present extra stability in gross revenue margins going ahead. The corporate additionally advantages from its excellent liquidity and a good portion of owned actual property in its portfolio of shops.BW Gasoline & Comfort has excellent liquidity together with money balances of about $110 million and revolver availability of about $125 million, assuming the deliberate transaction closes. The corporate’s $125 million dedicated revolving credit score facility will expire in 2026. The credit score settlement comprises a springing whole internet leverage monetary upkeep covenant (as outlined) of 5.0x that’s solely examined if there’s 25% drawn. We anticipate covenant is not going to be examined over the following 12 to 18 months. The corporate additionally owns a good portion of its comfort retailer actual property portfolio offering them with a fabric supply of alternate liquidity.FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGSThe steady outlook displays Moody’s expectation that BW Gasoline & Comfort’s leverage will stay under 5.0x, even assuming continued development via acquisitions.Rankings may very well be upgraded if the corporate’s monetary methods supported debt/EBITDA under 4.0x and maintained EBIT/curiosity expense above 3.0x. An improve would additionally require the corporate preserve no less than good liquidity. A downgrade might happen if leverage will increase to above 5.0x or EBIT/curiosity declines to under 2.0x.Fort Price, Texas-based BW Gasoline & Comfort Holdings, LLC, via its working subsidiaries, operates simply over 400 comfort shops in 9 states primarily within the midwest and southern US underneath the Yesway and Allsup’s banners. It’s privately owned by Brookwood Monetary Companions, LLC. Income for the fiscal 12 months ended December 31, 2020 approximated $1.5 billion.The principal methodology utilized in these scores was Retail Business printed in Might 2018 and out there at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1120379. Alternatively, please see the Score Methodologies web page on www.moodys.com for a duplicate of this technique.REGULATORY DISCLOSURESFor additional specification of Moody’s key ranking assumptions and sensitivity evaluation, see the sections Methodology Assumptions and Sensitivity to Assumptions within the disclosure kind. Moody’s Score Symbols and Definitions may be discovered at: https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_79004.For scores issued on a program, sequence, class/class of debt or safety this announcement gives sure regulatory disclosures in relation to every ranking of a subsequently issued bond or word of the identical sequence, class/class of debt, safety or pursuant to a program for which the scores are derived solely from present scores in accordance with Moody’s ranking practices. For scores issued on a help supplier, this announcement gives sure regulatory disclosures in relation to the credit standing motion on the help supplier and in relation to every specific credit standing motion for securities that derive their credit score scores from the help supplier’s credit standing. For provisional scores, this announcement gives sure regulatory disclosures in relation to the provisional ranking assigned, and in relation to a definitive ranking that could be assigned subsequent to the ultimate issuance of the debt, in every case the place the transaction construction and phrases haven’t modified previous to the task of the definitive ranking in a fashion that will have affected the ranking. For additional data please see the scores tab on the issuer/entity web page for the respective issuer on www.moodys.com.For any affected securities or rated entities receiving direct credit score help from the first entity(ies) of this credit standing motion, and whose scores might change because of this credit standing motion, the related regulatory disclosures can be these of the guarantor entity. Exceptions to this strategy exist for the next disclosures, if relevant to jurisdiction: Ancillary Companies, Disclosure to rated entity, Disclosure from rated entity.The scores have been disclosed to the rated entity or its designated agent(s) and issued with no modification ensuing from that disclosure.These scores are solicited. Please discuss with Moody’s Coverage for Designating and Assigning Unsolicited Credit score Rankings out there on its web site www.moodys.com.Regulatory disclosures contained on this press launch apply to the credit standing and, if relevant, the associated ranking outlook or ranking overview.Moody’s basic rules for assessing environmental, social and governance (ESG) dangers in our credit score evaluation may be discovered at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1243406.The International Scale Credit score Score on this Credit score Score Announcement was issued by one among Moody’s associates outdoors the EU and is endorsed by Moody’s Deutschland GmbH, An der Welle 5, Frankfurt am Most important 60322, Germany, in accordance with Artwork.4 paragraph 3 of the Regulation (EC) No 1060/2009 on Credit score Score Businesses. Additional data on the EU endorsement standing and on the Moody’s workplace that issued the credit standing is on the market on www.moodys.com.The International Scale Credit score Score on this Credit score Score Announcement was issued by one among Moody’s associates outdoors the UK and is endorsed by Moody’s Buyers Service Restricted, One Canada Sq., Canary Wharf, London E14 5FA underneath the regulation relevant to credit standing businesses within the UK. Additional data on the UK endorsement standing and on the Moody’s workplace that issued the credit standing is on the market on www.moodys.com.Please see www.moodys.com for any updates on modifications to the lead ranking analyst and to the Moody’s authorized entity that has issued the ranking.Please see the scores tab on the issuer/entity web page on www.moodys.com for added regulatory disclosures for every credit standing. Peter Trombetta Vice President – Senior Analyst Company Finance Group Moody’s Buyers Service, Inc. 250 Greenwich Road New York, NY 10007 U.S.A. JOURNALISTS: 1 212 553 0376 Consumer Service: 1 212 553 1653 Margaret Taylor Affiliate Managing Director Company Finance Group JOURNALISTS: 1 212 553 0376 Consumer Service: 1 212 553 1653 Releasing Workplace: Moody’s Buyers Service, Inc. 250 Greenwich Road New York, NY 10007 U.S.A. JOURNALISTS: 1 212 553 0376 Consumer Service: 1 212 553 1653 © 2021 Moody’s Company, Moody’s Buyers Service, Inc., Moody’s Analytics, Inc. and/or their licensors and associates (collectively, “MOODY’S”). All rights reserved.CREDIT RATINGS ISSUED BY MOODY’S CREDIT RATINGS AFFILIATES ARE THEIR CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES, AND MATERIALS, PRODUCTS, SERVICES AND INFORMATION PUBLISHED BY MOODY’S (COLLECTIVELY, “PUBLICATIONS”) MAY INCLUDE SUCH CURRENT OPINIONS. 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MCO and Moody’s Buyers Service additionally preserve insurance policies and procedures to deal with the independence of Moody’s Buyers Service credit score scores and credit standing processes. Data relating to sure affiliations that will exist between administrators of MCO and rated entities, and between entities who maintain credit score scores from Moody’s Buyers Service and have additionally publicly reported to the SEC an possession curiosity in MCO of greater than 5%, is posted yearly at www.moodys.com underneath the heading “Investor Relations — Company Governance — Director and Shareholder Affiliation Coverage.”Further phrases for Australia solely: Any publication into Australia of this doc is pursuant to the Australian Monetary Companies License of MOODY’S affiliate, Moody’s Buyers Service Pty Restricted ABN 61 003 399 657AFSL 336969 and/or Moody’s Analytics Australia Pty Ltd ABN 94 105 136 972 AFSL 383569 (as relevant). This doc is meant to be supplied solely to “wholesale shoppers” inside the which means of part 761G of the Companies Act 2001. By persevering with to entry this doc from inside Australia, you signify to MOODY’S that you’re, or are accessing the doc as a consultant of, a “wholesale consumer” and that neither you nor the entity you signify will instantly or not directly disseminate this doc or its contents to “retail shoppers” inside the which means of part 761G of the Companies Act 2001. MOODY’S credit standing is an opinion as to the creditworthiness of a debt obligation of the issuer, not on the fairness securities of the issuer or any type of safety that’s out there to retail traders.Further phrases for Japan solely: Moody’s Japan Ok.Ok. (“MJKK”) is a wholly-owned credit standing company subsidiary of Moody’s Group Japan G.Ok., which is wholly-owned by Moody’s Abroad Holdings Inc., a wholly-owned subsidiary of MCO. Moody’s SF Japan Ok.Ok. (“MSFJ”) is a wholly-owned credit standing company subsidiary of MJKK. MSFJ isn’t a Nationally Acknowledged Statistical Score Group (“NRSRO”). Due to this fact, credit score scores assigned by MSFJ are Non-NRSRO Credit score Rankings. Non-NRSRO Credit score Rankings are assigned by an entity that isn’t a NRSRO and, consequently, the rated obligation is not going to qualify for sure varieties of remedy underneath U.S. legal guidelines. 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