Tempur Sealy Announces Proposed $800 Million Senior Notes Offering

Rhea-AI Summary

Tempur Sealy International, Inc. (NYSE: TPX) announced plans to offer $800 million in senior notes due 2031, aimed at qualifying institutional buyers. The notes will be senior unsecured obligations, guaranteed by the same entities as the existing credit facility. The proceeds will primarily be used to repay outstanding balances under its Revolving Credit Facility and Accounts Receivable Securitization Facility, with the remainder allocated for general corporate purposes. This offering does not constitute a sale or solicitation of securities under the Securities Act.

Positive

• Offering of $800 million in senior notes may strengthen the company's balance sheet.
• Proceeds will be used to repay outstanding debts, improving financial stability.

Negative

• Issuing debt increases overall leverage, which could impact financial flexibility.

LEXINGTON, Ky., Sept. 21, 2021 /PRNewswire/ -- Tempur Sealy International, Inc. (NYSE: TPX, "Tempur Sealy" or "Company") today announced that it intends to offer, subject to market and other considerations, $800 million aggregate principal amount of senior notes due 2031 (the "Notes"). The offering will be made to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended ("Securities Act"), and outside the United States to non-U.S. persons pursuant to Regulation S under the Securities Act.

The Notes will be senior unsecured obligations of the Company guaranteed by the same entities that guarantee its obligations under its existing credit facility. The terms of the Notes will be determined by negotiations between Tempur Sealy and the initial purchasers.

Tempur Sealy intends to use the net proceeds from this offering partly to repay in full the outstanding balances under its Revolving Credit Facility and Accounts Receivable Securitization Facility and to use the balance for general corporate purposes.

This announcement is not an offer to sell or a solicitation of an offer to buy any security. The Notes will not be or have not been registered under the Securities Act and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.

About the Company

Tempur Sealy is committed to improving the sleep of more people, every night, all around the world. As a global leader in the design, manufacture and distribution of bedding products, 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 non-branded offerings include value-focused private label and OEM products. Our distinct brands allow for complementary merchandising strategies and are sold through third-party retailers, our Company-owned stores and e-commerce channels. This omni-channel strategy ensures our products are offered where ever and how ever customers want to shop.

Lastly, we accept our global responsibility to serve all stakeholders, our community and environment.  We have and are implementing programs consistent with our responsibilities.

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

What is Tempur Sealy's recent announcement regarding senior notes?

Tempur Sealy announced an offering of $800 million in senior notes due 2031, primarily to repay outstanding debts.

How will Tempur Sealy use the proceeds from the senior notes offering?

The proceeds will be used to repay outstanding balances under its Revolving Credit Facility and Accounts Receivable Securitization Facility, with the remainder for general corporate purposes.

What risks are associated with Tempur Sealy's debt offering?

Issuing debt increases leverage, which may impact financial flexibility and risk profile.

Who can purchase Tempur Sealy's senior notes?

The offering is targeted at qualified institutional buyers and non-U.S. persons outside the United States.

When is Tempur Sealy planning to close the senior notes offering?

The closing date has not been specified in the press release.