Hayward Industries Announces Successful Incremental Senior Secured Term Loan

Rhea-AI Summary

Hayward Holdings, Inc. (NYSE: HAYW) announced that its subsidiary, Hayward Industries, Inc., secured $125 million in an Incremental Term Loan B. The loan will help repay borrowings, boost cash reserves, and cover related expenses. It carries a floating interest rate and matures in May 2028. CFO Eifion Jones expressed that this financing enhances liquidity and financial flexibility to support growth initiatives. The loan's closing is expected later this month, contingent on customary conditions.

Positive

• Secured $125 million Incremental Term Loan B to improve liquidity.
• Expected to enhance financial flexibility and support growth initiatives.

Negative

• None.

CHARLOTTE, N.C.--(BUSINESS WIRE)-- Hayward Holdings, Inc. (NYSE: HAYW) (“Hayward” or the “Company”), a global designer, manufacturer, and marketer of a broad portfolio of pool equipment and technology, announced today that its indirect, wholly owned subsidiary Hayward Industries, Inc. has successfully secured commitments for an incremental senior secured term loan (“Incremental Term Loan B”) in an aggregate principal amount of $125 million. Proceeds will be used to repay ABL revolver borrowings, fund cash to the balance sheet, and pay related fees and expenses.

The Incremental Term Loan B will be issued with an original issue discount of 4.00% and will bear interest at a floating rate of Term SOFR (with a 0.50% floor) plus 3.25% per annum. The Incremental Term Loan B will mature in May 2028.

“We are pleased with the outcome of this financing as it improves our liquidity and will be net leverage neutral,” commented Eifion Jones, Hayward’s Chief Financial Officer. “With the completion of this financing we will have increased our financial flexibility, enhancing our ability to accelerate growth and reinvest into the business.”

The closing of the Incremental Term Loan B is expected to occur later this month, subject to customary closing conditions.

About Hayward Holdings, Inc.

Hayward Holdings, Inc. (NYSE: HAYW) is a leading global designer and manufacturer of pool technology. With a mission to deliver exceptional products, outstanding service and innovative solutions to transform the experience of water, Hayward offers a full line of energy-efficient and sustainable residential and commercial pool equipment including pumps, filters, heaters, cleaners, sanitizers, LED lighting, and water features all digitally connected through Hayward’s intuitive IoT-enabled SmartPad™.

SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS

This press release contains forward-looking statements and information relating to Hayward that are based on the beliefs of management as well as assumptions made by, and information currently available to management. These statements include statements about the Incremental Term Loan B, including Hayward’s intended use of proceeds there from and the timing of the closing of the Incremental Term Loan B. When used in this press release, words such as “may,” “will,” “should,” “could,” “intend,” “potential,” “continue,” “anticipate,” “believe,” “estimate,” “expect,” “plan,” “target,” “predict,” “project,” “seek” and similar expressions as they relate to us are intended to identify forward-looking statements. These statements reflect management’s current views with respect to future events, are not guarantees of future performance and involve risks and uncertainties that are difficult to predict. Further, certain forward-looking statements are based upon assumptions as to future events that may not prove to be accurate. Actual results or events could differ materially from the plans, intentions and expectations disclosed in forward-looking statements.

Hayward has based these forward-looking statements largely on management’s current expectations and projections about future events and financial trends that management believes may affect Hayward’s business, financial condition and results of operations. Important factors that could affect the Company’s future results and could cause those results or other outcomes to differ materially from those indicated in the forward-looking statements include those related to whether or not Hayward will be able to consummate the Incremental Term Loan B on the timeline or with the terms anticipated. In addition, Hayward’s business, financial condition and results of operations are subject to other risks and uncertainties, including those set forth under “Risk Factors” in the Company’s Annual Report on Form-10K.

The forward-looking statements in this press release represent management’s views as of the date of this press release. Unless required by United States federal securities laws, Hayward neither intends nor assumes any obligation to update these forward-looking statements for any reason after the date of this press release to conform these statements to actual results or to changes in our expectations.

View source version on businesswire.com: https://www.businesswire.com/news/home/20221209005582/en/

Media Relations:

Tanya McNabb

tmcnabb@hayward.com



Investor Relations:

Kevin Maczka

kmaczka@hayward.com

Source: Hayward Holdings, Inc.

FAQ

What is the purpose of Hayward's $125 million Incremental Term Loan B?

The Incremental Term Loan B is aimed at repaying borrowings, increasing cash reserves, and covering related fees and expenses.

What is the interest rate on Hayward's Incremental Term Loan B?

The loan will have a floating interest rate of Term SOFR plus 3.25% per annum, with a 0.50% floor.

When will Hayward's Incremental Term Loan B mature?

The Incremental Term Loan B will mature in May 2028.

How will the Incremental Term Loan B affect Hayward's financial position?

The financing is expected to enhance liquidity and provide greater financial flexibility for growth.

When is the closing of the Incremental Term Loan B expected?

The closing is expected to occur later this month, subject to customary closing conditions.