Jacuzzi Brands LLC announced the completion of its financial recapitalization on Tuesday, a move aimed at reducing its debt burden and freeing up liquidity to take advantage of the improving economic outlook.
The transaction has reduced Jacuzzi's debt by about $124 million and extended the maturity dates of its loans to 2018 and beyond, made possible by a new ABL facility of $35 million (undrawn at close) and a new term loan in place of $80 million.
Jacuzzi's primary equity sponsors, Ares Management, Apollo Global Management and Clearlake Capital Group, all lent a hand in converting debt to additional equity.
"The willingness of our sponsors to take a larger equity position in the company puts us in a strong position to capitalize on the improving global economy," said Bob Rowan, president and CEO of Jacuzzi Brands. "This transaction would not be possible without the continued support of our employees, dealers and suppliers who all believe in the tremendous growth potential of our portfolio companies and brands."