S&P raises Latham Pool

S&P said it upgraded Latham Pool Products Inc. to B+ from B and assigned Latham Group Inc., which recently completed its initial public offering, a B+ issuer rating. The agency also raised the senior secured first-lien term loan ratings to BB with a revised recovery rating of 1 indicating expectations for very high (estimated: 95%) recovery in default.

“The upgrade reflects lower pro forma adjusted leverage following the IPO, but Latham continues to be a financial sponsor-controlled company. We estimate that about $169 million of debt will be repaid from a portion of the IPO proceeds resulting in pro forma fiscal year-end 2020 debt to EBITDA of about 3x compared with pro forma adjusted debt to EBITDA of just over 4x for a recent dividend recapitalization this past January 2021,” S&P said in a press release.

The outlook is stable.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.