Mattress Firm talks $720 million term loan at Libor plus 400-425 bps

By Sara Rosenberg

New York, Sept. 11 – Mattress Firm Holding Corp. launched on Thursday its $720 million seven-year covenant-light term loan with price talk of Libor plus 400 basis points to 425 bps with a 1% Libor floor and an original issue discount of 99, according to a market source.

The term loan has 101 soft call protection for six months, the source said.

The company’s $845 million credit facility also includes a $125 million five-year ABL revolver.

Barclays, Bank of America Merrill Lynch, J.P. Morgan Securities LLC and UBS AG are the bookrunners on the deal.

Commitments are due by noon ET on Sept. 25, the source added.

Proceeds will be used to fund the acquisition of Sleep Train Inc. for $425 million, subject to working capital and other customary adjustments, finance bolt-on acquisitions and refinance existing debt.

Closing is expected in the fourth fiscal quarter of 2014, subject to expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act and other regulatory approvals, and customary conditions.

Net first-lien adjusted leverage and net total adjusted leverage is 3.3 times, and lease adjusted leverage is 6 times.

Mattress Firm is a Houston-based specialty bedding company. Sleep Train is a Rocklin, Calif.-based bedding specialty retailer.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.