Mattress Firm interim financing approved; plan hearing set for Nov. 16

By Caroline Salls

Pittsburgh, Oct. 9 – Mattress Firm, Inc. obtained court approval to access debtor-in-possession financing on an interim basis, according to an order filed Tuesday with the U.S. Bankruptcy Court for the District of Delaware.

The final DIP financing hearing is scheduled for Oct. 29.

As previously reported, the company obtained a commitment for $250 million in DIP financing, consisting of a $150 million ABL facility and a $100 million term facility.

Barclays Bank plc is the agent for the three-month ABL facility, which will bear interest at the Base rate plus 175 basis points or Eurodollar plus 275 bps.

Barclays Bank is also the agent for the three-month term facility, which will accrue interest at the Base rate plus 900 bps or Eurodollar plus 1,000 bps.

In addition, the court has scheduled a combined hearing on confirmation of Mattress Firm’s plan of reorganization and approval of the related disclosure statement for Nov. 16.

Mattress Firm, a Houston-based mattress retailer, filed bankruptcy on Oct. 5. The Chapter 11 case number is 18-12241.

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