Mattress Firm to launch $845 million credit facility on Thursday

By Sara Rosenberg

New York, Sept. 9 – Mattress Firm Holding Corp. will hold a bank meeting at 10:30 a.m. ET on Thursday to launch an $845 million credit facility, according to a market source.

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

The facility consists of a $125 million five-year ABL revolver and a $720 million seven-year covenant-light term loan, the source said.

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

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

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