New Issue: Tempur-Pedic sells $150 million seven-year notes to yield 10¼%

By Paul A. Harris

St. Louis, Aug. 8 - Tempur-Pedic Inc. and Tempur Production USA Inc. priced $150 million of senior subordinated notes due Aug. 15, 2010 (B3/B-) Friday at par to yield 10¼%, according to a syndicate source.

Price talk was for a yield of 10%-10¼%.

Lehman Brothers and UBS Investment Bank were joint bookrunners on the Rule 144A offering. The co-manager was Credit Suisse First Boston.

Proceeds will be used to repay bank and mezzanine debt and fund a special dividend to shareholders.

The issuer is a Lexington, Ky.-based mattress company.

Issuer:	Tempur-Pedic Inc./Tempur Production USA Inc.
Amount:	$150 million
Maturity:	Aug. 15, 2010
Security description:	Senior subordinated notes
Bookrunners:	Lehman Brothers, UBS Investment Bank
Co-manager:	Credit Suisse First Boston
Coupon:	10¼%
Price:	Par
Yield:	10¼%
Spread:	652 basis points
Call features:	Callable on Aug. 15, 2007 at 105.125, then 102.563, declining to par on Aug. 15, 2009 and thereafter
Equity clawback:	Until Aug. 15, 2006 for 35% at 110.25
Settlement date:	Aug. 15, 2003
Ratings:	Moody's: B3
	Standard & Poor's: B-
Rule 144A Cusip:	88023NAA5

© 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.