BW Gas & Convenience launches $410M term loan; commitments due March 17

BW Gas & Convenience Holdings LLC, which does business as Yesway, launched to market today a $410 million term loan B that will be used to refinance existing debt, according to sources. Commitments to the J.P. Morgan-led transaction are due at noon ET on March 17.

Price talk for the seven-year TLB is L+375-400, with a 0.5% Libor floor and an issue price of 99. That suggests a yield to maturity of 4.50%-4.76%. Lenders are offered six months of 101 soft call protection.

Moody's on March 8 upgraded the issuer's corporate rating to B1 from B2 and assigned a B1 rating to the facility. S&P Global Ratings assigned a facility rating of B+ with a recovery rating of 2, while the B corporate rating is unchanged.

Proceeds from the deal will be used to refinance the issuer's existing TLB due November 2024, which is priced at L+625 with a 1% floor and has a total net leverage covenant. Additional financing will include a new $125 million five-year revolver due 2026 with a springing net leverage covenant.

BW Gas & Convenience, backed by Brookwood Financial Partners, operates gas stations and convenience stores across the Midwest and Southwest primarily under the Yesway and Allsup's brand names.