Moody's ups Hayward, gives loan B2

Moody's Investors Service said it upgraded Hayward Industries, Inc.'s corporate family rating to B1 from B2, its probability of default rating to B1-PD from B2-PD, and the rating on the company's first-lien credit facilities to B2 from B3. Concurrently, Moody's gave a B2 rating to the company's planned $1 billion first-lien term loan due 2028. The speculative grade liquidity rating is unchanged at SGL-2.

“The ratings upgrade reflects Hayward's accelerated pace of de-leveraging following very strong first quarter of fiscal 2021 results. Hayward reported strong year-over-year revenue and EBITDA growth of 96% and 200% respectively for the first quarter period ending April 3, 2021, benefiting from continued high consumer demand for the company's pool equipment products and from increased production and capacity utilization,” Moody’s said in a press release.

Hayward will use the proceeds to fully repay its first-lien term loans, consisting of an $820 million term loan due 2024 and a $128 million incremental term loan due 2026, and to repay about $49 million of borrowings on its $250 million asset-based lending revolving facility due 2022.

The company also plans to replace its ABL facility with a new $425 million ABL revolving facility due 2026. Moody's will pull the ratings on the company's first-lien term loan credit facilities upon the close of the transaction and the repayment of these debt obligations, the agency said.

The outlook is stable.

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