Pool gets $185 million seven-year term facility via Bank of America

By Wendy Van Sickle

Columbus, Ohio, Jan. 2 – Pool Corp. entered into a $185 million seven-year term facility with Bank of America, NA as lender on Monday, according to an 8-K filed Friday with the Securities and Exchange Commission.

Interest will initially be Libor plus 125 basis points, with the spread ranging from 112.5 bps to 162.5 bps based on leverage.

Proceeds will be used to pay down the company's revolver, adding capacity for future share repurchases, acquisitions and growth-oriented working capital expansion.

Pool may prepay amounts outstanding without penalty, other than interest breakage costs, and the term facility will be repaid in quarterly installments of 1.25% on the last business day of each quarter beginning with the first quarter of 2020.

The total of the quarterly payments will be equal to 33.75% of the term facility with the final principal repayment of 66.25% due on the maturity date of Dec. 30, 2026.

Financial covenants include maintenance of a maximum average total leverage ratio of 3.25x and a minimum fixed charge coverage ratio of 2.25x.

Pool is a Covington, La.-based wholesale distributor of swimming pool and related backyard products.

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