Tempur Sealy amends and restates $850 million of credit facilities

By Sarah Lizee

Olympia, Wash., Oct. 17 – Tempur Sealy International, Inc. amended and restated its credit agreement with JPMorgan Chase Bank, NA on Wednesday, providing for a $425 million revolver and a $425 term loan, according to an 8-K filing with the Securities and Exchange Commission.

Tempur-Pedic Management, LLC is an additional borrower on the credit agreement.

The agreement allows for up to $550 million of incremental borrowings.

The revolver has a $60 million sub-facility for the issuance of letters of credit.

Interest is Libor plus 125 basis points to 200 bps, and the commitment fee is 17.5 bps to 35 bps, in each case depending on the consolidated total leverage ratio.

The company used proceeds under the term loan to refinance outstanding borrowings under the existing credit agreement and terminate the existing revolving commitments. The proceeds of the revolver can be used to finance working capital needs and for general corporate purposes.

The maturity date of the amended credit facilities is Oct. 16, 2024.

Amounts under the revolver may be borrowed, repaid and re-borrowed from time to time until the maturity date.

The term loan is subject to quarterly amortization and mandatory prepayment in connection with some debt issuances, asset sales and casualty events, subject to some reinvestment rights.

The company and its facilities must not permit its consolidated interest coverage ratio to be less than 3x, permit its consolidated total leverage ratio to be greater than 5x (subject to a temporary step in connection with some qualifying material acquisitions) or permit its consolidated secured leverage ratio to be greater than 3.5x (subject to a temporary step in connection with some qualifying material acquisitions.

JPMorgan, BofA Securities, Inc., Wells Fargo Securities, LLC and Fifth Third Bank are lead arrangers and joint bookrunners. BofA, Wells Fargo and Fifth Third are co-syndication agents. Bank of Nova Scotia, Mizuho Bank, Ltd. and Sumitomo Mitsui Banking Corp. are co-documentation agents.

Lexington, Ky.-based Tempur-Pedic North America manufactures mattresses and pillows.

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