The refinancing extends maturities (Term Loan to 2033, Revolver to 2031) vs. the prior Barclays arrangement, improving near-term liquidity visibility. The floating-rate structure exposes SWIM to rate risk. Watch upcoming quarterly filings for First Lien Net Leverage Ratio and whether Revolving Facility usage triggers the 40% covenant test. No change to operational outlook, but debt service costs will rise with SOFR.
Price Chart
Executive Summary
Latham Group's subsidiary Latham Pool Products entered into a new $300M senior secured Term Loan Facility (maturity August 20, 2033) and a $75M senior secured Revolving Credit Facility (maturity August 20, 2031) with Jefferies Finance LLC as administrative agent. The proceeds refinanced and replaced the existing Barclays-led credit agreement. The credit facilities include a financial covenant (maximum First Lien Net Leverage Ratio of 5.20:1.00) triggered when Revolving Credit usage exceeds 40% of commitments.
Key Facts
- Initial Term Loan of $300,000,000 (matures August 20, 2033), Revolving Credit Facility of $75,000,000 (matures August 20, 2031)
- Proceeds used to repay/terminate existing Barclays Bank PLC facility dated February 23, 2022
- Term Loan bears interest at Term SOFR + 4.00% or ABR + 3.00%
- Revolving Facility bears interest at Term SOFR + 3.25%-3.50% or ABR + 2.25%-2.50% (priced on First Lien Net Leverage Ratio)
- Quarterly Term Loan amortization of 0.25% of original principal ($750,000/quarter)
- 50% excess cash flow mandatory prepayment applies when First Lien Net Leverage Ratio > 2.75:1.00; 25% when between 1.75:1.00 and 2.75:1.00
- Financial covenant (Max First Lien Net Leverage Ratio 5.20:1.00) only applies when Revolving Facility usage exceeds 40% of commitments
- Guaranteed by Latham International Manufacturing Corp. and domestic subsidiaries; secured by substantially all assets
Financial Impact
Refinancing of existing credit facility; new facilities provide $300M term loan and $75M revolver with extended maturities (Term: 7 years, Revolver: 5 years). No financial results or debt-to-EBITDA disclosed.
Risk Factors
- Floating-rate exposure on $300M term loan and $75M revolver; rate increases directly impact net income
- Financial covenant (5.20x FLNLR) triggers if revolver usage exceeds 40% of commitments, potentially constraining flexibility during downturns
- Quarterly amortization of $750k on term loan adds fixed cash outflow
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001833197-26-000036 |
| Document: lathampoolspamplona-loangu.htm | 0001833197-26-000036 |
| Document: swim-20260820.htm | 0001833197-26-000036 |
| Document: 0001833197-26-000036-index-headers.html | 0001833197-26-000036 |
| Document: 0001833197-26-000036-index.html | 0001833197-26-000036 |
| Document: 0001833197-26-000036.txt | 0001833197-26-000036 |
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Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 6, 2026 21d ago | SC 13G/A | $6.39 | awaiting T+60 | — | $6.76 (+5.71%) |
Aug 21, 2026 9w ago | 8-K | $7.03 | awaiting T+60 | — | $6.76 (−3.91%) |
Aug 19, 2026 9w ago | 3 | $7.19 | awaiting T+60 | — | $6.76 (−6.05%) |
Jun 11, 2026 19w ago | Institutional Cluster | $5.69 $7.10 | ▲ +24.78% | ▲ +20.38% | $6.76 (+18.72%) |
May 21, 2026 22w ago | Insider Cluster | $5.16 $7.13 | ▲ +38.18% | ▲ +33.88% | $6.76 (+30.91%) |
Mar 20, 2026 31w ago | DEFA14A | $5.55 $5.45 | ▼ −1.80% | ▼ −16.22% | $6.76 (+21.71%) |
Mar 3, 2026 33w ago | Press Release | $7.20 $5.43 | ▼ −24.58% | ▼ −34.67% | $6.76 (−6.18%) |
Mar 3, 2026 33w ago | Press Release | $7.20 $5.43 | ▼ −24.58% | ▼ −34.67% | $6.76 (−6.18%) |
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