Tempur Sealy Announces Close of $1.6 Billion Term Loan B Facility
Tempur Sealy (NYSE: TPX) has successfully closed a $1.6 billion senior secured Term Loan B facility, set to mature in seven years. The company also amended its 2023 Credit Agreement to extend the availability period of $605 million in Delayed Draw Term A commitments. The Term Loan B proceeds, along with available cash and other debt proceeds, will be used exclusively to fund the previously announced Mattress Firm acquisition. The funds have been placed in escrow and will be released when the acquisition closes.
Tempur Sealy (NYSE: TPX) ha concluso con successo un finanziamento senior garantito mediante un Term Loan B dell'importo di 1,6 miliardi di dollari, con scadenza prevista tra sette anni. L'azienda ha anche modificato il suo Accordo di Credito 2023 per estendere il periodo di disponibilità di 605 milioni di dollari in impegni di Delayed Draw Term A. I proventi del Term Loan B, insieme a liquidità disponibile e altri proventi da debito, saranno utilizzati esclusivamente per finanziare l'acquisizione precedentemente annunciata di Mattress Firm. I fondi sono stati posti in escrow e verranno rilasciati al momento della chiusura dell'acquisizione.
Tempur Sealy (NYSE: TPX) ha cerrado con éxito una instalación de Préstamo B senior garantizado de 1.6 mil millones de dólares, que vencerá en siete años. La empresa también ha enmendado su Acuerdo de Crédito 2023 para extender el período de disponibilidad de 605 millones de dólares en compromisos de Delayed Draw Term A. Los ingresos del Préstamo B, junto con efectivo disponible y otros ingresos por deuda, se utilizarán exclusivamente para financiar la adquisición previamente anunciada de Mattress Firm. Los fondos han sido colocados en una cuenta de escrow y se liberarán cuando se cierre la adquisición.
템퍼 시일리 (NYSE: TPX)는 16억 달러 규모의 선순위 보장 Term Loan B 시설을 성공적으로 마감했으며, 만기는 7년입니다. 회사는 또한 2023년 신용 협약을 수정하여 6억 5천만 달러의 연기 인출 Term A 약정의 가용 기간을 연장했습니다. Term Loan B의 수익금은 사용 가능한 현금 및 기타 차입 수익과 함께 이전에 발표된 매트리스 퍼머 인수를 독점적으로 지원하는 데 사용될 것입니다. 자금은 에스크로에 예치되며 인수가 완료될 때 해제됩니다.
Tempur Sealy (NYSE: TPX) a réussi à finaliser un prêt senior garanti de type Term Loan B d'un montant de 1,6 milliard de dollars, dont l'échéance est prévue dans sept ans. L'entreprise a également modifié son accord de crédit de 2023 pour prolonger la période de disponibilité de 605 millions de dollars dans le cadre des engagements de Delayed Draw Term A. Les fonds provenant du Term Loan B, ainsi que la liquidité disponible et d'autres produits de la dette, seront utilisés exclusivement pour financer l'acquisition précédemment annoncée de Mattress Firm. Les fonds ont été placés en séquestre et seront libérés lors de la clôture de l'acquisition.
Tempur Sealy (NYSE: TPX) hat erfolgreich eine senior gesicherte Term Loan B-Fazilität in Höhe von 1,6 Milliarden Dollar abgeschlossen, die in sieben Jahren fällig wird. Das Unternehmen hat auch seinen Kreditvertrag von 2023 geändert, um den Verfügbarkeitszeitraum für 605 Millionen Dollar an Delayed Draw Term A-Verpflichtungen zu verlängern. Die Erlöse aus dem Term Loan B sowie verfügbares Bargeld und andere Kreditverpflichtungen werden ausschließlich zur Finanzierung der zuvor angekündigten Akquisition von Mattress Firm verwendet. Die Gelder wurden in ein Treuhandkonto eingezahlt und werden freigegeben, wenn die Akquisition abgeschlossen ist.
- Secured $1.6 billion in Term Loan B financing for Mattress Firm acquisition
- Successfully extended availability period for $605 million in Term A commitments
- Strong debt market support indicating confidence in the acquisition strategy
- Significant increase in debt burden with new $1.6 billion Term Loan B
- Additional leverage could impact company's financial flexibility
Insights
This
The escrow arrangement provides important protections for both lenders and TPX, ensuring funds are properly allocated upon deal closure. This financing package positions TPX to significantly expand its retail footprint and vertical integration capabilities through the Mattress Firm acquisition, though investors should monitor the increased leverage and integration execution risks.
– Expects to use Term Loan B proceeds to fund the expected acquisition of Mattress Firm
– Aligns availability period of Delayed Draw Term A Loan commitments
Tempur Sealy intends to use the proceeds from the Term Loan B, together with cash available and proceeds from other debt, solely to fund the cash consideration for the previously announced acquisition of Mattress Firm Group Inc. ("Mattress Firm"). The proceeds from the Term Loan B were funded into escrow and are to be released concurrently with the closing of the Mattress Firm acquisition.
Tempur Sealy Chairman and CEO Scott Thompson commented, "We appreciate the strong support behind this financing from the debt market. With this step, we have obtained the financing necessary to fund the proposed acquisition of Mattress Firm."
Forward-Looking Statements
This press release contains statements that may be characterized as "forward-looking" within the meaning of the federal securities laws. Such statements might include information concerning one or more of the Company's plans, guidance, objectives, goals, strategies, and other information that is not historical information. When used in this release, the words "will," "targets," "expects," "anticipates," "plans," "proposed," "intends," and variations of such words or similar expressions are intended to identify forward-looking statements. These forward-looking statements include, without limitation, statements relating to the Company's expectations regarding the expected Mattress Firm acquisition, including the outcome of the pending litigation with the FTC, expectations regarding post-closing supply agreements, future performance, integration of acquired companies with our business and the ability of the Company to close the Mattress Firm acquisition on the timeline indicated or at all. Any forward-looking statements contained herein are based upon current expectations and beliefs and various assumptions. There can be no assurance that the Company will realize these expectations or that these beliefs will prove correct.
Numerous factors, many of which are beyond the Company's control, could cause actual results to differ materially from any that may be expressed herein as forward-looking statements. These potential risks include risks associated with satisfaction of closing conditions prior to consummation of the acquisition, Mattress Firm's ongoing operations; the ability to successfully integrate Mattress Firm into Tempur Sealy's operations and realize synergies from the transaction; the possibility that the expected benefits of the acquisition are not realized when expected or at all; general economic, financial and industry conditions, particularly conditions relating to the financial performance and related credit issues present in the retail sector, as well as consumer confidence and the availability of consumer financing; the impact of the macroeconomic environment in both the
About Tempur Sealy International, Inc.
Tempur Sealy is committed to improving the sleep of more people, every night, all around the world. As a leading designer, manufacturer, distributor and retailer of bedding products worldwide, we know how crucial a good night of sleep is to overall health and wellness. Utilizing over a century of knowledge and industry-leading innovation, we deliver award-winning products that provide breakthrough sleep solutions to consumers in over 100 countries.
Our highly recognized brands include Tempur-Pedic®, Sealy® and Stearns & Foster® and our popular non-branded offerings consist of value-focused private label and OEM products. At Tempur Sealy we understand the importance of meeting our customers wherever and however they want to shop and have developed a powerful omni-channel retail strategy. Our products allow for complementary merchandising strategies and are sold through third-party retailers, our over 750 Company-owned stores worldwide and our e-commerce channels. With the range of our offerings and variety of purchasing options, we are dedicated to continuing to turn our mission to improve the sleep of more people, every night, all around the world into a reality.
Importantly, we are committed to carrying out our global responsibility to protect the environment and the communities in which we operate. As part of that commitment, we have established the goal of achieving carbon neutrality for our global wholly owned operations by 2040.
Tempur Sealy Investor Relations Contact
Aubrey Moore
Investor Relations
Tempur Sealy International, Inc.
800-805-3635
Investor.relations@tempursealy.com
View original content:https://www.prnewswire.com/news-releases/tempur-sealy-announces-close-of-1-6-billion-term-loan-b-facility-302286693.html
SOURCE Tempur Sealy International, Inc.
FAQ
What is the size of Tempur Sealy's (TPX) new Term Loan B facility?
What is the maturity period for Tempur Sealy's (TPX) Term Loan B?
How will Tempur Sealy (TPX) use the Term Loan B proceeds?