Open report — full analysis, no account required.
Sign up to generate reports and read filings that aren't on the open list.
Get notified when SWIM files again. Create a free account and we'll email you the moment its next filing is analyzed.
Get filing alertsLatham refinances credit facilities with $375M package: $75M revolver, $300M term loan
Filed August 21, 2026 · Period ending August 20, 2026 · ~1 min read
Key Changes
-
high
Entered new $375M credit agreement: $75M multicurrency revolving facility (5-year, SOFR+3.25%-3.50%) and $300M term loan (7-year, SOFR+4.00%), replacing 2022 credit facility with Barclays.
Item 1.01 verify on EDGAR → -
high
Term loan requires 0.25% quarterly amortization ($750K/quarter) plus mandatory prepayments from 50% of excess cash flow and 100% of asset sale/casualty proceeds.
Item 1.01 verify on EDGAR → -
medium
Springing financial covenant requires First Lien Net Leverage Ratio ≤5.20:1.00 only when revolving credit usage exceeds 40% of commitments at quarter-end.
Item 1.01 verify on EDGAR → -
medium
Revolving facility includes 0.25%-0.50% commitment fee on unused capacity; margin steps tied to leverage ratio provide incentive to deleverage.
Item 1.01 verify on EDGAR → -
low
Filing also reports creation of direct financial obligation under Item 2.03, incorporating Item 1.01 terms by reference.
Item 2.03 verify on EDGAR →
Summary
Latham Group refinanced its entire senior credit structure, replacing a 2022 facility with Barclays with a new $375 million package administered by Jefferies Finance. The new arrangement splits into a $75 million five-year multicurrency revolver (SOFR+3.25%-3.50%) and a $300 million seven-year term loan (SOFR+4.00%).
The term loan carries quarterly amortization of $750,000 and mandatory prepayments tied to half of excess cash flow and all asset sale proceeds, creating a structured deleveraging path. The revolver supports working capital across four currencies (USD, CAD, EUR, AUD) with no amortization requirement.
The springing covenant—a 5.20:1.00 First Lien Net Leverage Ratio test that activates only when revolver usage exceeds 40%—gives the company operational flexibility at low draw levels while imposing discipline if it leans heavily on the facility. The margin grid on the revolver (3.25%-3.50% depending on leverage) incentivizes deleveraging. For a company in the cyclical pool products sector, the seven-year term loan maturity (2033) extends runway, though the mandatory cash sweep and amortization schedule will pressure free cash flow if operating performance softens. The refinancing itself is a routine capital structure optimization with no disclosed prior-facility terms to compare pricing.
Section-by-Section Diff
Event · Item 2.03 — Creation of a Direct Financial Obligation
Item 2.03 — Creation of a Direct Financial Obligation filed; see Key Changes for terms.
Added in current filing · verify on EDGAR →
Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant. The disclosure set forth in Item 1.01 above is incorporated herein by reference.
The 8-K includes a labeled Item 2.03 section. Its body incorporates the primary Item (typically 1.01) by reference rather than restating terms — do not treat that thinness as 'Item 2.03 absent.' The company is signaling creation of a direct financial obligation alongside the agreement disclosure; keep Item 2.03 visible in the report.
Event · Item 1.01 — Entry into a Material Definitive Agreement
Item 1.01 — Entry into a Material Definitive Agreement filed; see Key Changes for terms.
Added in current filing · verify on EDGAR →
The Revolving Credit Facility matures on August 20, 2031. Loans outstanding under the Revolving Credit Facility denominated in U.S. Dollars and Canadian Dollars bear interest, at the borrower’s option, at a rate per annum based on Term SOFR or the Term CORRA Rate (each, as defined in the Credit Agreement), as applicable, plus a margin ranging from 3.25% to 3.50%, depending on the First Lien Net Leverage Ratio (as defined in the Credit Agreement, the “First Lien Net Leverage Ratio”), or at a rate per annum based on the Alternate Base Rate or the Canadian Prime Rate (each, as defined in the Credit Agreement), plus a margin ranging from 2.25% to 2.50%, depending on the First Lien Net Leverage Ratio.
The revolving credit facility matures in five years (August 2031) and carries interest rates of Term SOFR/CORRA plus 3.25%-3.50% or base rate plus 2.25%-2.50%, with the margin depending on the company's leverage ratio. The facility includes a commitment fee of 0.25%-0.50% on unused capacity and is not subject to amortization.
Added in current filing · verify on EDGAR →
The Term Loan Facility matures on August 20, 2033. Loans outstanding under the Term Loan Facility bear interest, at the borrower’s option, at a rate per annum based on Term SOFR (as defined in the Credit Agreement), plus a margin of 4.00%, or based on the Alternate Base Rate (as defined in the Credit Agreement), plus a margin of 3.00%. Loans under the Term Loan Facility are subject to scheduled quarterly amortization payments equal to 0.25% of the initial principal amount of the Term Loan Facility.
The $300 million term loan matures in seven years (August 2033) and carries interest of Term SOFR plus 4.00% or base rate plus 3.00%. The loan requires quarterly amortization payments of 0.25% of the initial principal amount ($750,000 per quarter), with mandatory prepayments required from 50% of excess cash flow and 100% of proceeds from non-permitted debt, asset sales, and casualty events.
Added in current filing · verify on EDGAR →
On the Closing Date, proceeds from the borrowings under the Credit Agreement were used to repay and replace all outstanding obligations under, and terminate, the Credit and Guaranty Agreement, dated as of February 23, 2022, among Latham Pool Products, LIMC and the other guarantors party thereto, the lenders party thereto and Barclays Bank PLC, as administrative agent.
The company used proceeds from the new credit facilities to fully repay and terminate its prior credit agreement from February 2022. This represents a complete refinancing of the company's senior credit facilities with Jefferies Finance replacing Barclays as administrative agent.
Thanks — your feedback helps us improve report quality.
Figures/quotes linked to EDGAR · Narrative written by AI · Aug 24, 2026 · How we verify