Moody’s extends B3 to Hayward loan

Moody's Investors Service said it extended its B3 rating to Hayward Industries, Inc.'s proposed $125 million incremental first-lien term loan.

The term loan will increase to about $969 million.

Hayward has a B3 corporate family rating, B3-PD probability of default rating and a Caa2 second-lien term loan rating.

The outlook is stable.

Proceeds from the $125 million incremental first-lien term loan will be used to repay a portion of revolver borrowings used to finance the acquisition of Paramount Pool & Spa Systems and repay a portion of Hayward's second-lien term loan.

The agency said the corporate family rating reflects the company’s very high financial leverage, an aggressive financial policy and the cyclical nature of the industry in which it competes.

It also reflects good margins and its position as one of three primary suppliers of pool equipment, Moody’s said.

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