18 Feb, 2022

Latham Pool wraps $325M term loan for refinancing; terms

Latham Pool Products Inc. has wrapped the $325 million term loan B that it will use to refinance existing debt through a Barclays-led arranger group, according to sources. The loan was downsized by $25 million and priced wide of talk with documentation changes. Final pricing for the seven-year TLB is at a spread of 375 basis points over the secured overnight financing rate, plus a credit spread adjustment, with a 0.5% floor and an original issue discount of 98.5. Proceeds will be used to refinance the company's existing $288 million TLB due June 2025 (L+600, 0% Libor floor) and for general corporate purposes. 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.

Terms:

Borrower Latham Pool Products Inc.
Issue $325 million term loan B
UoP Refinancing
Spread Sofr+CSA+375
Sofr+CSA floor 0.50%
Price 98.50
Tenor 7-year (February 2029)
YTM 4.59%
Four-year yield 4.75%
Call protection 101 soft call for 6 months
Corporate ratings B+/B1
Facility ratings BB-/B1
Recovery ratings 2
Financial covenants None
Arrangers Barc/BofA/GS/MS/Nom
Admin agent Barc
Px Talk Sofr+CSA+325-350/0.5%/99-99.5
Sponsor Public
Notes CSA: 10 bps for one-month rate, 15 bps for three-month rate, 25 bps for six-month rate. Margin step-up to L+400 if first-lien net leverage is greater than 2.5x. Downsized by $25 million.

*Article updated at 10:21 a.m. ET on Feb. 24 to add margin step-up details.