Penfund, an independent provider of junior capital to North American middle market companies, announced today the completion of a follow-on investment in Mister Car Wash  as part of a small club of lenders providing a new $225 million second lien credit facility.

The proceeds of this facility, together with the proceeds of a new US$800 million first lien term loan, have been used to refinance MCW’s existing debt and to pay a distribution to shareholders. Senior lenders also provided a new US$75 million revolving credit facility and US$40 million delayed draw term loan.

Headquartered in Tucson, Arizona, MCW is the largest car wash operator in the United States. Operating 300 car washes and 32 oil change expresses across 21 states, MCW has a reputation for providing high quality service at an affordable price. Innovative programs, such as the subscription-based Unlimited Wash Club, increase customer value and enhance the customer experience. The Company focuses on the conveyor wash segment and washes over 45 million cars annually.

Jeremy Thompson, a partner at Penfund, stated, “Penfund is excited to support Leonard Green and its investment in Mister Car Wash as both teams work to continue their exceptional track records. The car wash industry remains highly fragmented leaving significant white space for MCW to continue executing its growth strategy while simultaneously creating value for customers through network enhancements like the Unlimited Wash Club program.”