Moody's upgrades Hayward

Moody's Investors Service said it upgraded Hayward Industries, Inc.'s corporate family rating to B2 from B3, and its probability of default rating to B2-PD from B3-PD.

Simultaneously, Moody's confirmed the ratings on Hayward's first-lien term loan credit facilities at B3 and assigned a SGL-2 speculative grade liquidity rating. The outlook is positive. The Caa2 rating on its $205 million second-lien term loan is unchanged and will be withdrawn concurrently with the expected repayment of this debt obligation. These actions conclude the review started on Feb. 22, the agency said.

Hayward Holdings, Inc., the parent company of Hayward, reaped gross proceeds of about $377.4 million from its initial public offering. The company intends to use around $350 million of proceeds to fully repay its $205 million second-lien term loan due 2025 and the rest to repay first-lien term loans on a pro rata basis.

“The ratings upgrade reflects Hayward's meaningful reduction of financial leverage and enhanced liquidity following the reduction in funded debt, as well as its transition to a public company. Moody's estimates Hayward's debt/EBITDA leverage at 4.7x as of fiscal year-end Dec. 31, 2020, and pro forma for the IPO transaction, down from 6.5x pre-IPO as of the same period,” Moody’s said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.