Tempur Sealy amends facility, adds $665 million in loans

By Mary-Katherine Stinson

Lexington, Ky., Feb. 8 – Tempur Sealy International Inc., Tempur-Pedic Management, LLC and some wholly owned subsidiaries on Feb. 6 jointly entered into a first amendment to their credit agreement dated Oct. 10, according to an 8-K filed with the Securities and Exchange Commission.

The amended agreement adds a $625 million incremental delayed-draw term loan and a $40 million incremental revolving loan.

The term loan will bear interest at term SOFR plus an applicable margin ranging from 112.5 basis points to 200 bps, based on the company's consolidated total leverage ratio. It may be drawn in a single drawing on or before the date that is on or before Feb. 6, 2025. Once drawn, the term loan will have the same terms and conditions as the company’s existing term loans. It will mature on Oct. 10, 2028.

Repaid and prepaid amounts may not be reborrowed under the term loan.

The incremental revolving loan will have the same terms and conditions as the company's existing revolving loans.

Term loan proceeds will be used to pay the amendment’s fees and expenses and for the previously disclosed acquisition of Lima Holdings Corp., Lima Deal Corp. LLC, Mattress Firm Group Inc. and Steenbok Newco 9 Ltd. The amounts borrowed under the incremental revolving loan will be available for general corporate purposes.

Bank of America, NA is the administrative agent. BofA Securities Inc., Wells Fargo Securities, LLC, Sumitomo Mitsui Banking Corp., TD Securities (USA) LLC and Truist Securities, Inc. are the lead arrangers and bookrunners.

JPMoragn, Wells Fargo Bank, NA, Sumitomo Mitsui, TD Bank, NA, Toronto Dominion Bank, New York Branch and Truist Bank are the co-syndication agents.

HSBC Bank USA, HSBC UK Bank plc, Bank of Nova Scotia, Mizuho Bank, Ltd. and Fifth-Third Bank, NA are the senior co-documentation agents.

Tempur Sealy is a Lexington, Ky.-based designer, manufacturer, distributor and retailer of bedding products.

© 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.