Latham Pool launches $350M term loan; commitments due Feb. 17

Latham Pool Products Inc. has launched a $350 million term loan B that will be used to refinance its existing facility and for general corporate purposes, according to sources. Commitments are due by 5 p.m. ET on Feb. 17.

Price talk for the seven-year TLB is a spread of 325-350 basis points over Sofr, plus a credit spread adjustment, with a 0.5% floor and an original issue discount in the range of 99-99.5. The CSA is 10 bps for the one-month rate; 15 bps for the three-month rate; and 25 bps for the six-month rate. Lenders are offered six months of 101 soft call protection.

At talk, the yield to maturity is 3.89%-4.24%.

Barclays, BofA Securities, Goldman Sachs, Morgan Stanley, MUFG and Nomura are joint bookrunners on the deal. Barclays is administrative agent.

Latham's existing TLB due June 2025 (L+600, 0% Libor floor) totaled roughly $288 million following a $50 million add-on in November 2021 that was used for an acquisition.

Facility ratings are BB-/B1, with a 2 recovery rating from S&P Global Ratings, and corporate ratings are B+/B1, with stable outlooks.

In addition to the term loan, Latham will have a $75 million revolver due 2027.

Latham Group Inc. designs, manufactures and markets in-ground residential swimming pools in North America, Australia and New Zealand.