Moody's rates Latham Pool loans B2

Moody's Investors Service said it a corporate family rating of B2 to Latham Pool Products, Inc., along with a probability of default rating of B2-PD and B2 (LGD 4) ratings on its proposed senior secured bank facilities.

The proposed facilities consist of a $30 million senior secured first-lien revolving credit facility and a $215 million senior secured first-lien term loan.

The outlook is stable.

The proceeds from the term loan will be used to partially fund the leveraged buyout of Latham by private equity firm Pamplona Capital Management, Moody's said, and fund near-term working capital needs.

The remaining amount of the purchase price will be funded primarily through cash from Pamplona, Moody's noted.

The ratings reflect the highly cyclical and seasonal nature of Latham's pool business, narrow product diversification and small scale, the agency said.

The ratings also consider the company's exposure to the North America new single family housing market, which directly affects new pool starts, Moody's said.

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