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Hayward Industries Announces Successful Pricing and Allocation of New Senior Secured Term Loan Facility
May 18, 2021
Source: Businesswire
Hayward Holdings, Inc. (NYSE: HAYW), a global designer, manufacturer and marketer of broad portfolio of pool equipment and associated automation systems, announced today that its indirect, wholly owned subsidiary Hayward Industries, Inc. (the “Company”) has successfully secured commitments for a senior secured term loan facility (“New Term Loan Facility”) in an aggregate principal amount of $1 billion. Proceeds will be used to refinance existing term loans and revolver borrowings, fund cash to the balance sheet, and pay related fees and expenses. This refinancing will significantly reduce the Company's interest expense and extend the term loan debt maturity to 2028.
The New Term Loan Facility will be issued with an original issue discount of 0.50%, will bear interest at a floating rate of LIBOR (with a 0.50% floor) plus 2.75% per annum with a stepdown to LIBOR plus 2.50% per annum when net secured leverage is less than 2.5x. The New Term Loan Facility will mature in May 2028. As a result of the refinancing, the Company expects to reduce cash interest by approximately $7 - 10 million per year.
“We are pleased with the outcome of this refinancing as it significantly improves our capital structure and reduces the cost of our debt,” commented Eifion Jones, Hayward’s Chief Financial Officer. “With the completion of this refinancing we will have significantly increased our financial flexibility going forward, enhancing our position to continue to accelerate growth and service the marketplace.”
The closing of the New Term Loan Facility is expected to occur later this month, subject to customary closing conditions. The Company is concurrently upsizing and extending their asset-backed revolving credit facility; that transaction is also expected to close this month.
About Hayward Holdings, Inc.
Hayward Holdings, Inc. (NYSE: HAYW) is a global designer, manufacturer and marketer of a broad portfolio of pool equipment and associated automation systems. Hayward designs, manufactures and markets a full line of innovative, energy-efficient pool and spa equipment, with brands including AquaVac®, AquaRite®, ColorLogic®, Navigator®, OmniLogic®, OmniHub™, TriStar®, Super Pump®, TurboCell®, pHin™, CAT Controllers®, HCP Pumps and Saline C® Series.
Contacts
Investor Relations Contact:
Hayward Investor Relations:
908-288-9706
investor.relations@hayward.com
Media Relations Contact:
Lisa Wolford
917-846-0881
lwolford@soleburytrout.com
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