Latham Group Enters $375M Credit Agreement, Replaces Prior Facility

What Happened
Latham Group, Inc. (through subsidiaries) announced on Aug 20, 2026 that it entered into a new senior secured Credit Agreement providing a $300 million U.S. dollar Term Loan Facility and a $75 million multicurrency Revolving Credit Facility (total initial commitments $375 million). The new facility, administered by Jefferies Finance LLC, was used to repay and terminate the company’s prior credit agreement dated Feb 23, 2022.

Key Details

• Amounts & purpose: $300M term loan + $75M revolving line (multicurrency: USD, CAD, EUR, AUD); revolver can be used for working capital and general corporate purposes.
• Maturities: Revolving Credit Facility matures Aug 20, 2031; Term Loan Facility matures Aug 20, 2033.
• Interest & fees: Revolver rates vary by currency and leverage (e.g., Term SOFR/CORRA + 3.25–3.50% or alternate base rate + 2.25–2.50%); commitment fee 0.25–0.50% on unused commitments. Term loan: Term SOFR + 4.00% or alternate base rate + 3.00%; quarterly amortization of 0.25% of initial principal.
• Covenants, guarantees & collateral: Facility guaranteed by Latham International Manufacturing Corp. (LIMC) and certain domestic subsidiaries; secured by substantially all assets (accounts receivable, equipment, IP, inventory). Includes customary negative and affirmative covenants and default remedies. If revolver usage exceeds 40% at quarter-end, LIMC must meet a maximum First Lien Net Leverage Ratio of 5.20:1.00. Mandatory prepayment provisions include 50% of excess cash flow and 100% of certain proceeds from non-permitted debt, asset sales and casualty/condemnation events.

Why It Matters
This refinancing provides Latham with committed liquidity ($75M revolver) and longer-term financing ($300M term loan) while replacing its prior credit facility. Investors should note the interest rate margins and quarterly amortization on the term loan, the leverage covenant threshold tied to revolver usage, and mandatory prepayment terms — all of which affect cash flow flexibility and the company’s capacity for future borrowing or distributions.