Latham Group, Inc. filed an 8-K with the SEC on August 21, 2026, disclosing that certain of its subsidiaries entered into a new Credit Agreement on August 20, 2026, establishing a $75 million revolving credit facility and a $300 million term loan facility, with proceeds used to retire and terminate a prior credit agreement with Barclays Bank PLC as administrative agent.

Key Highlights

  • Revolving Credit Facility: A senior secured multicurrency revolving line of credit with an initial principal amount of $75 million, maturing August 20, 2031.
  • Term Loan Facility: A U.S. Dollar senior secured term loan with an initial principal amount of $300 million, maturing August 20, 2033.
  • Administrative Agent: Jefferies Finance LLC serves as administrative agent under the Credit Agreement, replacing Barclays Bank PLC under the prior facility.
  • Borrower and Guarantors: Latham Pool Products, Inc. is the borrower; Latham International Manufacturing Corp. and certain wholly-owned domestic subsidiaries are guarantors.
  • Collateral: Obligations are secured by substantially all assets of the borrower and guarantors, including accounts receivable, equipment, intellectual property, and inventory, according to the filing.
  • Leverage Covenant: A maximum First Lien Net Leverage Ratio of 5.20:1.00 applies when Revolving Credit Facility usage exceeds 40% of commitments as of the last day of any fiscal quarter.

Latham Group's New Credit Facilities: Structure, Terms, and Use of Proceeds

According to the 8-K filed by Latham Group, Inc. (NASDAQ:SWIM), a pool products manufacturer headquartered in Latham, NY, certain subsidiaries entered into a Credit Agreement on August 20, 2026. Latham Pool Products, Inc. acts as the borrower. The revolving credit facility, sized at $75 million, permits borrowings in U.S. Dollars, Canadian Dollars, Euros, and Australian Dollars, and may be used to finance working capital and general corporate purposes. It is not subject to amortization and matures on August 20, 2031. Interest on U.S. Dollar and Canadian Dollar revolving loans is set at Term SOFR or the Term CORRA Rate plus a margin ranging from 3.25% to 3.50%, or at the Alternate Base Rate or Canadian Prime Rate plus a margin ranging from 2.25% to 2.50%, each depending on the First Lien Net Leverage Ratio.

The term loan facility, in an initial principal amount of $300 million, matures on August 20, 2033, and bears interest at Term SOFR plus a margin of 4.00%, or at the Alternate Base Rate plus a margin of 3.00%, at the borrower's option. The filing states that term loan loans are subject to scheduled quarterly amortization payments equal to 0.25% of the initial principal amount. The Credit Agreement also contains mandatory prepayment provisions, including requirements to apply 50% of excess cash flow and 100% of net cash proceeds from non-permitted indebtedness, asset sales, and certain other events toward prepayment, subject to customary exceptions.

The filing discloses that proceeds from borrowings under the new Credit Agreement were used to repay and terminate all outstanding obligations under a prior Credit and Guaranty Agreement dated February 23, 2022, under which Barclays Bank PLC had served as administrative agent. The new Credit Agreement includes customary affirmative and negative covenants, restrictions on additional indebtedness, liens, investments, affiliate transactions, and restricted payments, as well as customary event of default provisions. The filing was signed by Oliver C. Gloe, Chief Financial Officer of Latham Group, Inc.

What Was Disclosed

Latham Group disclosed the August 20, 2026 entry into a Credit Agreement establishing a $75 million revolving credit facility and a $300 million term loan facility, administered by Jefferies Finance LLC, with proceeds used to retire a prior credit facility with Barclays Bank PLC as administrative agent.