Monitor the Bankruptcy Court's entry of the Final DIP Order (expected within weeks), which will release the second tranche of $45M term loan. The key catalyst is the confirmation of a plan of reorganization — common equity holders are likely to receive no recovery. Watch for any deviation from the approved budget or milestones, which could trigger an event of default and acceleration of the DIP facilities.
Price Chart
Executive Summary
Leslie's, Inc. filed for Chapter 11 bankruptcy on September 30, 2026, and on October 2, 2026, entered into a $225M DIP ABL credit facility (Bank of America, U.S. Bank) and a $90M DIP term loan facility (Jefferies-led, with $45M funded at interim order and $45M at final order). The company also received a delisting notice from Nasdaq. The restructuring support agreement with term loan lenders provides a framework for a pre-arranged reorganization, but common equity holders are likely to be wiped out.
Key Facts
- Leslie's filed Chapter 11 bankruptcy on September 30, 2026 (Petition Date).
- Entered into a $225M senior secured super-priority DIP ABL credit facility on October 2, 2026.
- Entered into a $90M superpriority secured DIP term loan credit facility on October 2, 2026 ($45M funded at interim order, $45M at final order).
- Received a delisting notice from Nasdaq (Item 3.01).
- Pre-petition term loan lenders owed approximately $50M in revolving loans and $11.145M in letters of credit as of September 29, 2026.
- Restructuring Support Agreement signed with term loan lenders on September 30, 2026.
- DIP ABL facility matures April 2, 2027 (subject to extension).
- DIP term loan facility matures April 2, 2027 (subject to extension).
- Minimum liquidity covenant of $25M and minimum Excess Availability of $10M under the ABL DIP facility.
- Cash dominion event triggered if Excess Availability < 12.5% of Line Cap or < $15.625M.
- Approved budget and variance reporting requirements (weekly borrowing base certificates, 13-week rolling budgets).
- Milestones set forth in Schedule 6.14 (ABL) and Schedule 5.15 (Term Loan) for the Chapter 11 process.
Financial Impact
Chapter 11 filing with $225M DIP ABL facility and $90M DIP term loan facility. Pre-petition debt includes ~$50M revolver and ~$11.145M LCs. Common equity expected to be wiped out under the restructuring plan.
Risk Factors
- Failure to meet milestones or budget variances could trigger defaults and loss of DIP financing.
- Delisting from Nasdaq will severely reduce liquidity and institutional ownership.
- Common equity is expected to be wiped out under the restructuring plan.
- Adverse court rulings (e.g., surcharge of collateral, denial of DIP orders) could destabilize the process.
- Operational underperformance during Chapter 11 could lead to liquidation rather than reorganization.
Investment Themes
Documents Analyzed
This report is based on 2 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001193125-26-414287 |
| Document: d190635dex101.htm | 0001193125-26-414287 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 5, 2026 22d ago | 8-K | $0.0900 $0.0200 | ▲ +77.78% | ▲ +77.64% | $0.0810 (+10.00%) |
Sep 30, 2026 27d ago | 8-K | $0.1600 $0.0600 | ▲ +62.50% | ▲ +64.41% | $0.0810 (+49.37%) |
Jun 1, 2026 21w ago | 8-K | $3.95 $8.18 | ▲ +107.09% | ▲ +110.05% | $0.0810 (−97.95%) |
May 13, 2026 23w ago | 8-K | $3.50 $3.09 | ▼ −11.71% | ▼ −11.00% | $0.0810 (−97.69%) |
May 13, 2026 23w ago | Press Release | $3.50 $3.09 | ▲ +11.71% | ▲ +11.00% | $0.0810 (+97.69%) |
Apr 30, 2026 25w ago | Press Release | $1.71 | awaiting T+5 | — | $0.0810 (−95.26%) |
US Market Status
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