Franklin Square provides liquidity for pool maker

The secured loan to Latham Pool Products is in support of its core business of manufacturing and distributing pool components across the US and Canada 

Franklin Square Capital Partners’ BDCs have provided a $150 million first lien secured loan to Latham Pool Products, a swimming pool and components manufacturer. Latham is a portfolio company of Connecticut-based private equity firm, Littlejohn and Co.

 The financing was arranged by FS Investment Corporation, FS Investment Corporation II and FS Investment Corporation III, affiliates of Franklin Square Capital which are sub-advised   by a unit of GSO Capital Partners, the credit arm of Blackstone.

The lenders and the borrower declined to comment on the loan terms.

“Latham has both a diversified product portfolio and a strong presence in the North American pool industry,” said Brad Marshall (pictured), senior managing director and senior portfolio manager at GSO, in a press statement. Latham is the largest manufacturer of swimming pool components and pool accessories in North America and serves 4000 customer accounts as well as operating 21 manufacturing facilities in Canada and the US, according to the statement.

Earlier in June this year, FSIC funded a $52.5 million second lien senior secured note to National Surgical Healthcare (NSH), owner and operator of surgical hospitals and ambulatory surgery centers in the US.

Franklin Square Investment Corp., the publicly traded arm of Franklin Square Capital Partners, last year originated $1.6 billion in loans, according to the firm’s full year 2014 results reported on 2 March 2015. The portfolio, valued at $4.2 billon and consisting mainly of senior secured debt, produced net returns of 7.17 percent for 2014.  

The BDCs provide credit to mid-market companies in the US mostly in the form of senior secured lending. The three vehicles have about $14 billion in assets under management.