Hayward Holdings, Inc.HAYW
Hayward Holdings, Inc. Debt Disclosure
Long-Term Debt
Long-term debt consists of the following (in thousands):
| December 31, | |||||||||||
| 2024 | 2023 | ||||||||||
| First Lien Term Facility, due May 28, 2028 | $ | 965,000 | $ | 975,000 | |||||||
| Incremental Term Loan B, due May 28, 2028 | — | 123,438 | |||||||||
| ABL Revolving Credit Facility | — | — | |||||||||
| Other bank debt | 6,461 | 8,775 | |||||||||
| Finance lease obligations | 2,448 | 4,729 | |||||||||
| Subtotal | 973,909 | 1,111,942 | |||||||||
Less: Current portion of long-term debt | (13,991) | (15,088) | |||||||||
| Less: Unamortized debt issuance costs | (9,356) | (17,574) | |||||||||
| Total | $ | 950,562 | $ | 1,079,280 | |||||||
Interest expense, net for the years ended December 31, 2024, 2023, and 2022 consisted of the following (in thousands):
| Years Ended December 31, | |||||||||||||||||
| 2024 | 2023 | 2022 | |||||||||||||||
| Interest expense on outstanding debt | $ | 68,016 | $ | 75,972 | $ | 48,472 | |||||||||||
| Amortization of deferred financing fees | 4,203 | 4,696 | 3,271 | ||||||||||||||
| Interest (income) | (10,056) | (7,084) | (356) | ||||||||||||||
| Interest expense, net | 62,163 | 73,584 | 51,387 | ||||||||||||||
| Loss on debt extinguishment | 4,926 | — | — | ||||||||||||||
| Total | 67,089 | 73,584 | 51,387 | ||||||||||||||
The Company’s existing ABL Revolving Credit Facility (the “ABL Facility”) includes revolving loan commitments of $425.0 million, with a peak season commitment of $475.0 million, subject to a borrowing base calculation based on available eligible receivables, inventory, and qualified cash in North America. Accounts receivable sold under the Receivables Purchase Agreement are not eligible receivables under the ABL Facility. An amount of up to 30% (or up to 40% with agent consent) of the then-outstanding commitments under the ABL Facility is available to the Company’s Canada and Spain subsidiaries. A portion of the ABL Facility not to exceed $50.0 million is available for the issuance of letters of credit in U.S. dollars, of which $20.0 million is available for the issuance of letters of credit in Canadian dollars. The ABL Facility also includes a $50.0 million swingline loan facility and a $17.5 million First-In, Last-Out Sublimit (“FILO Sublimit”).
As of December 31, 2024, the Company had approximately $163.4 million of undrawn lines of credit available under the ABL Facility, subject to certain conditions, including compliance with certain financial covenants. The ABL Facility matures on June 1, 2026. The borrowings under the ABL Facility bear interest at a rate equal to an adjusted term Secured Overnight Financing Rate (“SOFR”) or a base rate plus a margin of between 1.25% to 1.75% or 0.25% to 0.75%, respectively, while the FILO Sublimit borrowings bear interest at a rate equal to SOFR or a base rate plus a margin of between 2.25% to 2.75% or 1.25% to 1.75%, respectively. The Company has the option to increase the ABL Facility, subject to certain conditions, including the commitment of the participating lenders.
On June 26, 2024, the Company entered into the Fourth Amendment to its existing ABL Facility to replace the Canadian reference rate from the Canadian Dollar Offered Rate (“CDOR”) to the Canadian Overnight Repo Rate Average (“CORRA”).
The Company’s First Lien Credit Agreement (the “First Lien Term Facility”) bears interest at a rate equal to a base rate or SOFR (which includes an applicable credit spread adjustment), plus, in either case, an applicable margin. In the case of SOFR tranches, the applicable margin is 2.75% per annum with a 0.50% floor, with a stepdown to 2.50% per annum with a 0.50% floor when net secured leverage as defined in the First Lien Credit Agreement is less than 2.5x. The loan under the First Lien Term Facility amortizes quarterly at a rate of 0.25% of the original principal amount and requires a $2.5 million repayment of principal on the last business day of each March, June, September and December.
Under the First Lien Term Facility, the Company had an incremental term loan in an aggregate original principal amount of $125 million (the “Incremental Term Loan B”). In April 2024, the Company voluntarily prepaid the Incremental Term Loan B in full.
The First Lien Term Facility and ABL Facility (collectively “Credit Facilities”) contain collateral requirements, restrictions, and covenants, including restrictions under the First Lien Term Facility on the Company’s ability to pay dividends on the Common Stock. Per the First Lien Credit Agreement, the Company must also make an annual mandatory prepayment of principal commencing April 2023 for between 0% and 50% of the excess cash, as defined in the First Lien Credit Agreement, generated in the prior calendar year. The amount due varies with the First Lien Leverage Ratio as defined in the First Lien Credit Agreement, from zero if the First Lien Leverage Ratio is less than or equal to 2.5x, to fifty percent if the First Lien Leverage Ratio is greater than 3.0x less certain allowed deductions. The Company did not have a mandatory prepayment for 2025 based on the First Lien Leverage Ratio as of December 31, 2024 and the applicable criteria under the First Lien Credit Agreement. All outstanding principal is due at maturity on May 28, 2028. As of December 31, 2024, the Company was in compliance with all covenants under the Credit Facilities.
At December 31, 2024, the future principal payments of the Company’s long-term debt obligations, excluding finance lease obligations, are as follows (in thousands):
| 2025 | $ | 12,424 | |||
| 2026 | 12,420 | ||||
| 2027 | 11,117 | ||||
| 2028 | 935,347 | ||||
| 2029 | 102 | ||||
| Thereafter | 51 | ||||
| Total | $ | 971,461 | |||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2024 | Feb 27, 2025 | Showing above |
| 2023 | Feb 29, 2024 | |
| 2022 | Feb 28, 2023 | |
| 2021 | Mar 9, 2022 | |
About Debt Disclosures
Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.
Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.