Tempur Sealy Announces Pricing of $1.6 Billion Term Loan B Facility
Tempur Sealy International has successfully priced a $1.6 billion senior secured Term Loan B facility. The Term Loan B, set to mature in seven years, is priced at SOFR + 250 bps with an OID of 99.5. The company intends to use the proceeds, along with available cash and other debt, to fund the previously announced acquisition of Mattress Firm Group. The Term Loan B is expected to close and fund into escrow in the next few weeks, with the proceeds to be released concurrently with the closing of the Mattress Firm acquisition.
Tempur Sealy International ha fissato con successo un prestito senior garantito Term Loan B da 1,6 miliardi di dollari. Il Term Loan B, con scadenza tra sette anni, è stato fissato con un tasso di SOFR + 250 bps e un OID di 99,5. L'azienda intende utilizzare il ricavato, insieme a liquidità disponibile e altri debiti, per finanziare l'acquisizione precedentemente annunciata del Mattress Firm Group. Si prevede che il Term Loan B venga chiuso e finanziato in deposito nei prossimi settimane, con il ricavato che sarà rilasciato contemporaneamente alla chiusura dell'acquisizione di Mattress Firm.
Tempur Sealy International ha conseguido fijar un préstamo senior garantizado Term Loan B de 1.6 mil millones de dólares. El Term Loan B, que vencerá en siete años, tiene un precio de SOFR + 250 bps con un OID de 99.5. La compañía tiene la intención de utilizar los ingresos, junto con el efectivo disponible y otras deudas, para financiar la adquisición previamente anunciada del Mattress Firm Group. Se espera que el Term Loan B cierre y financie en una cuenta de depósito en las próximas semanas, y los ingresos se liberarán simultáneamente con el cierre de la adquisición de Mattress Firm.
템퍼 시일리 인터내셔널은 16억 달러 규모의 선순위 담보 Term Loan B 대출 가격을 성공적으로 책정했습니다. 7년 만기인 Term Loan B는 SOFR + 250 bps로 가격이 책정되었으며, OID는 99.5입니다. 회사는 이전에 발표된 매트리스 펌 그룹의 인수를 자금 조달하기 위해 수익금을 사용하겠다고 전했습니다. Term Loan B는 다음 몇 주 내에 마감되고 에스크로에 자금이 지급될 것으로 예상되며, 해당 자금은 매트리스 펌 인수 마감과 동시에 해제될 예정입니다.
Tempur Sealy International a réussi à fixer un prêt senior garanti Term Loan B de 1,6 milliard de dollars. Le Term Loan B, qui arrivera à échéance dans sept ans, est fixé à SOFR + 250 bps avec un OID de 99,5. L'entreprise a l'intention d'utiliser les fonds, en plus de la liquidité disponible et d'autres dettes, pour financer l'acquisition précédemment annoncée du Mattress Firm Group. Le Term Loan B devrait être clôturé et financé dans un compte séquestre dans les prochaines semaines, et les fonds devraient être libérés en même temps que la clôture de l'acquisition de Mattress Firm.
Tempur Sealy International hat erfolgreich einen 1,6 Milliarden Dollar schweren senior gesicherten Term Loan B bepreist. Der Term Loan B, der in sieben Jahren fällig wird, hat einen Zinssatz von SOFR + 250 bps und einen OID von 99,5. Das Unternehmen beabsichtigt, die Mittel zusammen mit verfügbaren liquiden Mitteln und anderen Schulden zu nutzen, um die zuvor angekündigte Übernahme der Mattress Firm Group zu finanzieren. Der Term Loan B wird voraussichtlich in den nächsten Wochen geschlossen und in ein Treuhandkonto eingezahlt, wobei die Mittel gleichzeitig mit dem Abschluss der Übernahme von Mattress Firm freigegeben werden.
- Successful pricing of a $1.6 billion Term Loan B facility
- Proceeds to be used for strategic acquisition of Mattress Firm
- Seven-year maturity provides long-term financing
- Increased debt load may impact financial flexibility
- Additional interest expenses from the new loan
Insights
The pricing of a
- The loan's seven-year maturity provides Tempur Sealy with long-term financing stability.
- Pricing at SOFR +
250 bps with a99.5% Original Issue Discount (OID) suggests relatively favorable terms, reflecting market confidence in the company's creditworthiness. - The acquisition of Mattress Firm, a major player in the mattress retail space, could substantially expand Tempur Sealy's market presence and distribution capabilities.
- However, investors should note that this significant debt increase will impact the company's balance sheet and future cash flows.
While the strategic benefits of the Mattress Firm acquisition could be substantial, the increased leverage poses risks, especially if market conditions deteriorate. Investors should closely monitor the company's post-acquisition performance and its ability to generate synergies to justify this large debt-funded expansion.
The
- By acquiring Mattress Firm, Tempur Sealy gains direct access to a vast retail network, potentially improving its market share and distribution efficiency.
- The consolidation may lead to increased pricing power and economies of scale, potentially benefiting margins in the long term.
- However, the integration of such a large acquisition poses operational challenges and execution risks.
- The mattress industry has been facing headwinds from changing consumer behaviors and economic uncertainties. This move could be seen as a strategic response to these challenges.
Investors should watch for potential market share shifts, changes in competitive dynamics and any regulatory scrutiny that may arise from this significant industry consolidation. The success of this deal will largely depend on Tempur Sealy's ability to effectively integrate Mattress Firm and realize the anticipated synergies.
– Expects to use Term Loan B proceeds to fund the proposed acquisition of Mattress Firm
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 required for the previously announced acquisition of Mattress Firm Group Inc. ("Mattress Firm"). The Term Loan B will close and fund into escrow with the proceeds to be released concurrently with the closing of the Mattress Firm acquisition.
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 closing of the Term Loan B on the terms indicated and the use of proceeds thereof, as well as 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 receipt of regulatory approvals and 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
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SOURCE Tempur Sealy International, Inc.
FAQ
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