Moody’s rates Hayward loans B3, Caa2

Moody’s Investors Service today assigned a first time B3 Corporate Family Rating and B3-PD Probability of Default Rating to Hayward Industries, Inc. and a B3 (LGD 3) rating to the company’s proposed $850 million first lien term loan and a Caa2 (LGD 6) rating to its proposed $285 million second lien term loan. The outlook is stable.

The ratings reflect the company’s very high financial leverage and aggressive financial policy, and the cyclical nature of the industry in which it competes.

The rating also reflects Hayward’s good margins and its position as one of four primary suppliers of pool equipment, Moody’s said.

The stable outlook incorporates Moody’s expectation that Hayward will remain a very highly leveraged company but that earnings will grow and that free cash flow will remain positive.

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