Simmons Bedding gets early tenders for $260.1 million 11¼% notes

By Jennifer Chiou

New York, Sept. 26 - Simmons Bedding Co. said it received early tenders from holders of $260.1 million, or 61.2%, of its $425 million of 11¼% senior secured notes due 2015 in the cash offer for the securities.

The total purchase price will be $1,035.50 for each $1,000 principal amount of notes tendered by 5 p.m. ET on Sept. 25. The total payment includes an early tender payment of $20.00 per $1,000 of notes.

Simmons also announced that it plans to redeem any notes that remain outstanding following the early settlement date, which is expected to fall on Oct. 1. The redemption price will be $1,030.00 for each $1,000 principal amount of notes, plus accrued interest.

Holders who tender after the early deadline but by the offer expiration at midnight ET on Oct. 10 will receive the tender payment of $1,015.50 per $1,000 of notes.

The company also will pay accrued interest up to but excluding the settlement date.

As announced, the tender offer is conditioned on Simmons obtaining financing that is, along with cash on hand, enough to fund the offer. The offer also has a merger condition that requires Dawn Merger Sub, LLC to have merged with and into AOT Bedding Super Holdings, LLC, with AOT Bedding surviving as an indirect wholly owned subsidiary of Dawn Intermediate, Inc.

Goldman Sachs & Co. (800 828-3182 or collect 212 902-6941) is the dealer manager. D.F. King & Co. (800 347-4750 or banks and brokers 212 269-5550) is the information agent and tender agent.

Simmons is an Atlanta-based mattress manufacturer. The company launched the offer on Sept. 12.

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