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Latham Group (SWIM) adds $375M credit maturing 2031–33

Filing Impact
(High)
Filing Sentiment
(Neutral)
Form Type
8-K

Rhea-AI Filing Summary

Latham Group, Inc. (SWIM) entered into a new senior secured Credit Agreement through its subsidiaries on August 20, 2026. The financing consists of a $75 million multicurrency revolving credit facility and a $300 million U.S. Dollar term loan facility. Proceeds on the closing date were used to repay and terminate the company’s prior February 23, 2022 credit and guaranty agreement.

The revolving facility matures on August 20, 2031, bears variable interest based on Term SOFR, Term CORRA, EURIBOR, BBSY or base/prime rates plus margins of 2.25%–3.50%, and carries an unused commitment fee of 0.25%–0.50%. The term loan matures on August 20, 2033, amortizes quarterly at 0.25% of its initial principal, and bears interest at Term SOFR plus 4.00% or Alternate Base Rate plus 3.00%. The agreement includes an excess cash flow sweep of 50%, leverage-based covenants including a maximum First Lien Net Leverage Ratio of 5.20:1.00 when revolving usage exceeds 40% of commitments, and is guaranteed and secured by substantially all assets of key subsidiaries.

Positive

  • None.

Negative

  • None.

Filing Explained

The executed August 20 credit agreement adds restrictions on additional debt, liens, investments, mergers, affiliate transactions and distributions; if an event of default occurs and continues, lenders may terminate commitments and require immediate repayment of all outstanding amounts.

Item 1.01 Entry into a Material Definitive Agreement Business
The company signed a significant contract such as a merger agreement, credit facility, or major partnership.
Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement Financial
The company incurred a new significant debt or off-balance-sheet obligation.
Item 9.01 Financial Statements and Exhibits Exhibits
Financial statements, pro forma financial information, or exhibit attachments filed with this report.
Revolving Credit Facility size $75 million Initial principal amount of senior secured multicurrency revolving line of credit
Term Loan Facility size $300 million Initial principal amount of U.S. Dollar senior secured term loan facility
Revolving Credit Facility maturity August 20, 2031 Stated maturity date of revolving facility
Term Loan Facility maturity August 20, 2033 Stated maturity date of term loan facility
Revolver interest margin range 2.25%–3.50% Margin over benchmark rates depending on First Lien Net Leverage Ratio
Term Loan SOFR margin 4.00% Margin over Term SOFR on term loan borrowings
Unused commitment fee 0.25%–0.50% Per annum fee on unused revolving commitments, leverage-based
Maximum First Lien Net Leverage Ratio 5.20:1.00 Compliance requirement when revolver usage exceeds 40% of commitments
Revolving Credit Facility financial
"The Credit Agreement provides a senior secured multicurrency revolving line of credit"
A revolving credit facility is a type of loan that a business can borrow from whenever it needs money, up to a set limit. It’s like having a credit card for companies—allowing them to borrow, pay back, and borrow again as needed, providing flexibility for managing cash flow or funding short-term expenses.
Term Loan Facility financial
"a U.S. Dollar senior secured term loan facility in an initial principal amount"
A term loan facility is a type of loan provided by a lender that is repaid over a set period of time, usually with fixed payments. It functions like a large, upfront loan that a borrower agrees to pay back gradually, often used to fund major investments or projects. For investors, understanding a company's use of such loans helps assess its financial stability and risk level.
First Lien Net Leverage Ratio financial
"depending on the First Lien Net Leverage Ratio (as defined in the Credit Agreement)"
First lien net leverage ratio measures how much of a company’s top-priority secured debt remains after using available cash, compared with the company’s recurring cash earnings. Think of it like the size of a primary mortgage relative to your annual take-home pay after you count money in your savings account. Investors use it to judge credit risk and borrowing capacity: a higher ratio suggests greater default risk, tighter financing terms, or covenant pressure.
commitment fee financial
"A commitment fee accrues on any unused portion of the commitments"
A commitment fee is a charge a lender applies to a borrower for keeping a loan or line of credit available, even before any money is drawn. Think of it as a reservation fee for borrowing power; the borrower pays to ensure funds will be there when needed. Investors care because it adds to a company’s borrowing cost, affects cash flow and liquidity, and can signal lenders’ willingness to extend credit.
mandatory prepayment provisions financial
"The Credit Agreement contains customary mandatory prepayment provisions"
Restricted Subsidiaries financial
"LIMC and the Restricted Subsidiaries (as defined in the Credit Agreement)"
Restricted subsidiaries are parts of a company that are legally limited by its loan or bond agreements from doing things like sending cash up to the parent, selling assets, taking on more debt, or changing their business without permission. Investors care because these limits affect how easily the parent company can use that unit’s money or collateral — like rooms in a house that are locked and unavailable when you need cash or want to refinance — which changes credit risk and financial flexibility.

FAQ

What new credit facilities did Latham Group, Inc. (SWIM) enter into on August 20, 2026?
Latham Group entered into a new senior secured Credit Agreement with a $75 million multicurrency revolving credit facility and a $300 million U.S. Dollar term loan facility, replacing its prior February 23, 2022 credit and guaranty agreement.

How will Latham Group (SWIM) use the proceeds from the new Credit Agreement?
On the closing date, proceeds from borrowings under the new Credit Agreement were used to repay and replace all outstanding obligations under the prior February 23, 2022 Credit and Guaranty Agreement, which was terminated.

What are the maturities of Latham Group’s new revolving and term loan facilities (SWIM)?
The Revolving Credit Facility matures on August 20, 2031. The Term Loan Facility matures on August 20, 2033, with scheduled quarterly amortization payments equal to 0.25% of the initial principal amount.

What interest rates apply to Latham Group’s new Term Loan Facility (SWIM)?
Loans under the Term Loan Facility bear interest, at the borrower’s option, at a rate per annum based on Term SOFR + 4.00% or based on the Alternate Base Rate + 3.00%, as defined in the Credit Agreement.

What financial covenants apply to Latham Group’s new credit facilities (SWIM)?
If revolving usage exceeds 40% of total revolving commitments at quarter-end, Latham International Manufacturing Corp. must comply with a maximum First Lien Net Leverage Ratio of 5.20:1.00, along with other customary affirmative and negative covenants.

What mandatory prepayment provisions are included in Latham Group’s new Credit Agreement (SWIM)?
The Credit Agreement requires mandatory prepayments with 50% of any excess cash flow and with 100% of net cash proceeds from non-permitted indebtedness, asset sales, and casualty or condemnation events, in each case subject to customary exceptions.

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Understanding 8-K Material Events →
FALSE000183319700018331972026-08-202026-08-20

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of report (Date of earliest event reported): August 20, 2026
Latham Group, Inc.
(Exact name of registrant as specified in its charter)
Delaware001-4035883-2797583
(State or other jurisdiction of incorporation)(Commission
File Number)		(I.R.S. Employer
Identification No.)
787 Watervliet Shaker Road, Latham, NY
12110
(Address of principal executive offices)(Zip Code)
(800) 833-3800
(Registrant’s telephone number, including area code)
N/A
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
oWritten communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
oSoliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
oPre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
oPre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common stock, par value $0.0001 per shareSWIMThe Nasdaq Stock Market LLC
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company x
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o



Item 1.01    Entry into a Material Definitive Agreement.

On August 20, 2026 (the “Closing Date”), certain subsidiaries of Latham Group, Inc. (the “Company”) entered into the Credit Agreement (the “Credit Agreement”) and the Loan Guaranty, each by and among Latham Pool Products, Inc. (“Latham Pool Products”), as the borrower, Latham International Manufacturing Corp. (“LIMC”), as a guarantor, the other subsidiaries of LIMC party thereto as guarantors, the lenders and letter of credit issuers party thereto and Jefferies Finance LLC, as administrative agent (the “Administrative Agent”).

The Credit Agreement provides a senior secured multicurrency revolving line of credit in an initial principal amount of $75 million, which includes a sub-limit for letters of credit (the “Revolving Credit Facility”), and a U.S. Dollar senior secured term loan facility in an initial principal amount of $300 million (the “Term Loan Facility”).
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.

On and after the Closing Date, the Revolving Credit Facility may be utilized to finance working capital and other general corporate purposes and permits Latham Pools Products to borrow loans in U.S. Dollars, Canadian Dollars, Euros and Australian Dollars. 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. Loans outstanding under the Revolving Credit Facility denominated in Euros or Australian Dollars bear interest based on EURIBOR or the BBSY (each, as defined in the Credit Agreement), respectively, plus a margin ranging from 3.25% to 3.50%, depending on the First Lien Net Leverage Ratio. A commitment fee accrues on any unused portion of the commitments under the Revolving Credit Facility. The commitment fee is due and payable quarterly in arrears and accrues at a rate per annum ranging from 0.25% to 0.50%, depending on the First Lien Net Leverage Ratio. The Revolving Credit Facility is not subject to amortization.

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 Credit Agreement contains customary mandatory prepayment provisions, including requirements to make mandatory prepayments with 50% of any excess cash flow and with 100% of the net cash proceeds from the incurrence of non-permitted indebtedness, asset sales and casualty and condemnation events, in each case, subject to customary exceptions.

To the extent that outstanding usage of the Revolving Credit Facility exceeds 40% of the commitments under the Revolving Credit Facility as of the last day of any fiscal quarter, LIMC is required to be in compliance with a maximum First Lien Net Leverage Ratio of 5.20:1.00 as of the last day of such fiscal quarter. The Credit Agreement also includes customary affirmative and negative covenants, including, without limitation, in the case of negative covenants, certain restrictions on the ability of Latham Pool Products, LIMC and the Restricted Subsidiaries (as defined in the Credit Agreement) to incur additional indebtedness, create liens, make investments, consolidate or merge with other entities, enter into transactions with affiliates, make prepayments with respect to certain indebtedness and make restricted payments and other distributions. The Credit Agreement also contains customary event of default provisions. The occurrence and continuation of an event of default under the Credit Agreement would entitle the Administrative Agent and the Required Lenders (as defined in the Credit Agreement) to exercise remedies, including, without limitation, to terminate all commitments and to declare all outstanding amounts under the Credit Agreement to be immediately due and payable.

The obligations under the Credit Agreement are guaranteed by LIMC and the wholly-owned domestic subsidiaries of LIMC (other than Latham Pool Products) as set forth in the Loan Guaranty, which guaranty is subject to customary exceptions. The obligations under the Credit Agreement are secured by substantially all assets of Latham Pool Products, LIMC and the other guarantors assets, including, without limitation, their accounts receivable, equipment, intellectual property and inventory.

The foregoing description of the Credit Agreement, the Loan Guaranty and the transactions contemplated thereby does not purport to be complete and is subject to, and qualified in its entirety by reference to, the full text of the Credit Agreement


and Loan Guaranty, which are filed herewith as Exhibits 10.1 and 10.2, respectively, and which are incorporated herein by reference.


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.


Item 9.01Financial Statements and Exhibits.
(d) Exhibits
Exhibit
No.		Description
10.1*
Credit Agreement, dated as of August 20, 2026, by and among Latham Pool Products, Inc., Latham International Manufacturing Corp., the other guarantors party thereto, the lenders and letter of credit issuers party thereto and Jefferies Finance LLC, as administrative agent
10.2*
Loan Guaranty, dated as of August 20, 2026, by and among Latham Pool Products, Inc., Latham International Manufacturing Corp., the other guarantors party thereto, the lenders and letter of credit issuers party thereto and Jefferies Finance LLC, as administrative agent
104Cover Page Interactive Data File (embedded within the Inline XBRL document)
*Schedules and exhibits to this agreement have been omitted pursuant to Item 601(a)(5) of Regulation S-K. The Company agrees to furnish any omitted schedules or exhibits upon the request of the Securities and Exchange Commission. A list of the omitted schedules and exhibits to this agreement is set forth in the agreement.


SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Date: August 21, 2026LATHAM GROUP, INC.
By:/s/ Oliver C. Gloe
Name:Oliver C. Gloe
Title:Chief Financial Officer

Source: View Original Filing on SEC EDGAR

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