Tempur Sealy to keep paying down debt; ratio to be higher than target

By Devika Patel

Knoxville, Tenn., March 5 – Tempur Sealy International, Inc. expects its debt ratio will be slightly above its targeted range of between 3x and 4x in the first quarter, but expects the ratio will fall later in the year.

The company intends to keep paying down debt for a bit longer.

“We’re in the mode of paying down debt for a little while longer,” chairman, president and chief executive officer Scott L. Thompson said at the Raymond James 39th Annual Institutional Investors Conference in Orlando on Monday.

“We’re going to be slightly above our debt ratio target at the end of the first quarter because of normal seasonality.

“We burn some cash in the first quarter and make it up later in the year.

“Our target’s 3.5x, we’ve ranged it between 3x to 4x,

“Sixty percent of the debt is fixed and the maturities are out there a while,” he said.

Tempur Sealy is a Lexington, Ky.-based bedding provider.

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