Leslie’s, Inc. has entered into definitive agreements for two debtor-in-possession (DIP) credit facilities as it proceeds with Chapter 11 bankruptcy proceedings. On October 2, 2026, the company and its subsidiaries executed a Term Loan DIP Credit Agreement and an ABL DIP Credit Agreement.
The Term Loan DIP Facility provides a total of $90.0 million in senior secured super-priority debtor-in-possession term loans. The facility is divided into two draws: $45.0 million is available immediately following interim court approval, and the remaining $45.0 million becomes available upon the entry of a final order. As of October 2, 2026, the company has drawn the initial $45.0 million tranche.
The ABL DIP Credit Agreement provides a $225.0 million aggregate principal amount commitment for a senior secured super-priority asset-based revolving credit facility. No loans have been drawn under this facility to date.
Both facilities are secured by liens on substantially all assets of the company and its subsidiaries. The Term Loan DIP Facility bears interest at a rate of SOFR plus 6.50% per annum, while the ABL DIP Facility carries an interest rate of SOFR plus 3.25% per annum. Both facilities mature six months from October 2, 2026, subject to earlier maturity upon the effective date of the company’s reorganization plan.
In addition to the new financing, the company reported that approximately $50 million in revolving loans and $11.145 million in undrawn letters of credit remained outstanding under its pre-petition credit agreement as of October 2, 2026. These existing obligations are subject to a dollar-for-dollar roll-up into the ABL DIP Facility.
The company also disclosed that it received a notification from The Nasdaq Stock Market LLC on October 5, 2026, regarding the delisting of its common stock. Nasdaq determined to delist the stock due to the Chapter 11 cases, following a prior determination that the stock’s bid price had closed below the $1.00 minimum for 30 consecutive business days. The company did not request a hearing to appeal the delisting and anticipates its common stock will commence trading on the OTC Markets Group following the suspension of trading on October 6, 2026.
