Simpson Thacher is representing Leslie's, Inc. (“Leslie’s” or the “Company”) in a comprehensive financial reorganization that will be implemented through pre-arranged chapter 11 cases.
The Company has announced that it has entered into a Restructuring Support Agreement (“RSA”) with a group of its existing lenders that includes commitments for $90 million of new-money debtor-in-possession (“DIP”) financing and a $60 million equity financing, with both the DIP and equity financing fully backstopped by certain of the RSA parties, to implement a restructuring that will result in a $685 million (or 90%) reduction in the Company’s outstanding funded debt. To implement these transactions, Leslie’s filed chapter 11 cases in the United States Bankruptcy Court for the Southern District of Texas. The Company expects to emerge from chapter 11 with a significantly deleveraged balance sheet in early 2027.
Leslie’s is the largest and most trusted direct-to-customer brand in the U.S. pool and spa care industry serving residential customers and pool professionals nationwide. Founded in 1963, the Company serves the aftermarket needs of residential and professional consumers with an extensive and largely exclusive assortment of essential pool and spa care products, and operates more than 900 physical locations and a robust digital platform.
The Simpson Thacher team includes Jack Luze, David Nemecek, Katie Taylor, Moshe Fink, Stephanie Marshak, Zachary Weiner, Michael Koch and Gillian Ho (Capital Structure Solutions); Abdul Fasinro, Gordon Lee, Nick Scian and Alex Feurstein (Finance); Marisa Stavenas, Catherine Ciriello and Yuki Zhang (Capital Markets); Charlie Mathes (PCAP); Russell Light and Sophie Staples (Tax); and Craig Waldman, Jonathan Kaplan, Griselda Cabrera and Alexander McNamara (Litigation).