Jacuzzi Brands Cuts Debt Through Recap

Jacuzzi Brands said Tuesday that it recapitalized and reduced its debt by about $124 million. As part of the deal, Ares Management, Apollo Global Management and Clearlake Capital Group converted debt to purchase additional equity. Also, Ares converted an additional $25 million of debt into a new subordinated mezzanine loan. Jacuzzi makes and distributes bath and plumbing products.


CHINO HILLS, Calif.–(BUSINESS WIRE)–Jacuzzi Brands LLC, announced today the closing of a recapitalization transaction that significantly raises liquidity, materially reduces outstanding indebtedness and extends the maturity dates of its loans out to 2018 and beyond. The transaction will position Jacuzzi to capitalize on opportunities emerging from the recovery of the housing industry and the overall economy.

With this transaction Jacuzzi has reduced its debt by approximately $124 million. It will have in place a new US ABL facility of $35 million (undrawn at close) and have a new term loan in place of $80 million. To facilitate the transaction, Jacuzzi’s primary equity sponsors, Ares Management, Apollo Global Management and Clearlake Capital Group, converted debt to purchase additional equity and Ares converted an additional $25 million of debt into a new subordinated mezzanine loan.

Bob Rowan, president and CEO of Jacuzzi, stated: “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. This transaction would not be possible without the continued support of our employees, dealers and suppliers who all believe in the tremendous growth potential for our portfolio companies and brands.”

O’Melveny & Myers acted as legal counsel to the Company.

About Jacuzzi Brands LLC

Jacuzzi Brands LLC, through its subsidiaries, is a global manufacturer and distributor of branded bath and plumbing products. These include whirlpool baths, spas, showers, and bathtubs, and other plumbing products. Our products are marketed under a portfolio of brand names, including JACUZZI®, SUNDANCE®, THERMOSPAS® and DIMENSION ONE SPAS®. For more information about Jacuzzi, visit www.jacuzzi.com or call 1-800-288-4002

About Ares Management LLC

Ares Management is a global alternative asset manager and SEC registered investment adviser (since January 31, 2005) with approximately $59 billion of committed capital under management and approximately 560 employees as of December 31, 2012. The firm is headquartered in Los Angeles with offices across the United States, Europe and Asia.

About Apollo Global Management LLC

Apollo is a leading global alternative investment manager with offices in New York, Los Angeles, Houston, London, Frankfurt, Luxembourg, Singapore, Mumbai and Hong Kong. Apollo had assets under management of approximately $113 billion as of December 31, 2012 in private equity, credit and real estate funds invested across a core group of nine industries where Apollo has considerable knowledge and resources. For more information about Apollo, please visit www.agm.com.

About Clearlake Capitol Group

Clearlake Capital Group, L.P. is a private investment firm focused on special situations and private equity investments such as corporate divestitures, recapitalizations, buyouts, reorganizations, turnarounds and other equity investments. Clearlake seeks to partner with world-class management teams by providing patient, long-term capital and operational expertise to invest in dynamic businesses. Clearlake currently manages approximately $1.4 billion of equity capital, and Clearlake’s founding principals have led over 50 investments totaling more than $3 billion of capital in sectors including business services and software, communication, consumer products/retail, defense/public safety, energy/power, healthcare, industrials, media, and technology. For more information, please visit www.clearlakecapital.com.

Forward-Looking Statements:

This release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended.

Forward-looking statements are based on our currently available financial, economic and competitive data and on business plans. Actual results could vary materially depending on risks and uncertainties that may affect the Company’s operations, markets, services, prices and other factors. These risks and uncertainties include, but are not limited to, economic, competitive, legal, governmental and technological factors. There is no assurance that the Company’s expectations will be realized.

Forward-looking statements speak only as of the date made. The Company undertakes no obligation to update any forward-looking statements, including prior forward-looking statements, to reflect the events or circumstances arising after the date as of which they were made. As a result of these risks and uncertainties, readers are cautioned not to place undue reliance on any forward-looking statements included herein or that may be made elsewhere from time to time by, or on behalf of, us.