Leslie's (LESL) Stock Soars Over 23% After-Hours: Here's What's Going On
Leslie’s Inc. (NASDAQ: LESL ) shares gained 23.38% to $0.20 in after-hours trading on Wednesday after the Arizona-based pool and spa care retailer announced it signed a restructuring support agreement (RSA) with existing lenders. Debt Reduction Anchors the Deal According to the company’s Wednesday announcement, the deal would reduce funded debt by about $685 million, or 90%. It includes $90 million in new-money debtor-in-possession (DIP) financing and a $60 million equity financing. Certain RSA parties fully backstop the equity portion. The company also seeks court approval for a $225 million asset-based DIP facility from existing asset-based lending (ABL) lenders. Leslie’s said the arrangements would provide sufficient liquidity through the bankruptcy process. Store Closures and Lender Control Leslie’s filed prearranged Chapter 11 cases in the U.S. Bankruptcy Court for the Southern District of Texas. The company also announced the closure of 76 stores. All other stores and its digital platforms remain open, it said. Upon emergence, targeted for early 2027, existing lenders are expected to hold majority ownership. Such a shift typically leaves current shareholders with limited reco
Leslie’s Inc. 20 in after-hours trading on Wednesday after the Arizona-based pool and spa care retailer announced it signed a restructuring support agreement (RSA) with existing lenders. Debt Reduction Anchors the Deal According to the company’s Wednesday announcement, the deal would reduce funded debt by about $685 million, or 90%. It includes $90 million in new-money debtor-in-possession (DIP) financing and a $60 million equity financing.
Certain RSA parties fully backstop the equity portion. The company also seeks court approval for a $225 million asset-based DIP facility from existing asset-based lending (ABL) lenders. Leslie’s said the arrangements would provide sufficient liquidity through the bankruptcy process. S.
Bankruptcy Court for the Southern District of Texas. The company also announced the closure of 76 stores. All other stores and its digital platforms remain open, it said. Upon emergence, targeted for early 2027, existing lenders are expected to hold majority ownership.
Such a shift typically leaves current shareholders with limited recovery. “Leslie’s is here to stay,” CEO Jason McDonell said. 13. 43.
36% over the past 12 months. LESL is currently trading near its 52-week low. 54%, according to Pro data. Edge Stock Rankings indicates Leslie’s stock has a negative price trend across all time frames.
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