Moody's: AOT Bedding loan B1

Moody's Investors Service said it assigned a B2 corporate family rating to AOT Bedding Super Holdings LLC and a B1 rating to its proposed $1.23 billion senior secured term loan B. The outlook is stable.

On Aug. 5, Advent International announced that it agreed to acquire a majority interest in AOT parent company National Bedding Co., the majority owner and licensee of Serta, and Simmons Bedding Co., for approximately $3 billion. At the completion of the transaction, the company will be renamed Serta Simmons Holdings, LLC.

"The transaction will leave AOT materially levered with debt to EBITDA of around 7.5 times," said Kevin Cassidy, a Moody's senior credit officer in a news release.

But Moody's said it believes leverage will steadily decline to below 6 times by the end of 2013 owing to a combination of increased earnings and debt repayment.

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