Hayward launches $850 million term loan B at Libor plus 375-400 bps

By Sara Rosenberg

New York, July 10 – Hayward Industries Inc. launched on Monday its $850 million seven-year covenant-light first-lien term loan B (B3) with price talk of Libor plus 375 basis points to 400 bps with a 0% Libor floor and an original issue discount of 99.5, according to a market source.

The first-lien term loan has 101 soft call protection for six months, the source said.

Bank of America Merrill Lynch, Jefferies LLC, Morgan Stanley Senior Funding Inc. and Nomura are the leads on the deal.

Commitments are due on July 19, the source added.

Proceeds will be used to help fund the buyout of the company by a partnership led by CCMP Capital Advisors LP and MSD Partners LP and including the Alberta Investment Management Corp.

The company is also getting a $285 million second-lien term loan (Caa2) that is being privately placed.

Closing is expected in the third quarter, subject to customary conditions.

Hayward is an Elizabeth, N.J.-based manufacturer of residential and commercial pool equipment.

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