Fluidra successfully completes the refinancing of its debt structure and links it to its ESG targets

Fluidra, the global leader in equipment and connected solutions in the pool and wellness sector, has successfully completed the refinancing of its debt structure, including a dual-currency senior secured term loan (TLB) and a senior secured revolving credit facility (RCF). The terms of the TLB and RCF are linked to two environmental targets defined in Fluidra’s ESG “Responsibility Blueprint” plan.

The TLB will consist of a $750 million tranche at Term SOFR + 200bps and a €450 million tranche at Euribor + 225bps, with both tenures extended to 2029. As a result of the refinancing, Fluidra is upsizing the TLB, rebalancing the currency mix, and cancelling the AUD tranche. In addition, the RCF is upsized from €130 million to €450 million and its tenure is extended to 2027, while the asset-based lending facility (ABL) due in 2023 will be cancelled.

The refinancing does not increase net debt, with the proceeds used to amortize existing debt (existing TLB, drawn ABL and RCF, and other debt incl. promissory notes), and for general corporate purposes. Moody’s and S&P have maintained current Fluidra’s ratings, Ba2 and BB+ respectively.

With this transaction, Fluidra reinforces its commitment to sustainability linking the margin ratchet to the achievement of two targets of its Responsibility Blueprint 2020-2026: (i) to achieve climate neutrality in its own operations by 2027 (Scopes 1 & 2), and, (ii) to reach 100% of electricity consumption from renewable sources by 2027.

The financing has been established in accordance with the Sustainability Linked Loan Principles ("SLLP") published by the LMA and the assurance of the KPIs will be performed by an external independent auditor on an annual basis, as part of the verification of Fluidra's Integrated Report where those figures will be informed.

“This transaction simplifies our debt structure keeping only the EUR and USD tranches, while locking in current rates up to 2029. This new currency mix is more aligned with our profitability after the acquisitions in North America in 2021. And more importantly, it shows our strong commitment to sustainability and to our Responsibility Blueprint” states Xavier Tintoré, CFTO of Fluidra.

The closing of the transaction is expected to take place before the end of this month and will be communicated to the market in due course.