Hayward flexes $850 million term loan B to Libor plus 350 bps

By Sara Rosenberg

New York, July 18 – Hayward Industries Inc. lowered pricing on its $850 million seven-year covenant-light first-lien term loan B (B3) to Libor plus 350 basis points from talk of Libor plus 375 bps to 400 bps, according to a market source.

Also, the original issue discount on the first-lien term loan was revised to 99.75 from 99.5, the source said.

As before, the first-lien term loan has a 0% Libor floor and 101 soft call protection for six months.

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

Commitments were scheduled to be due at noon ET on Tuesday, 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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