Tempur-Pedic Closes Its $375M Senior Notes Offering

December 19, 2012  by in UnCategorized   

By Home Furnishings Business in Bedding on December 20, 2012

Bedding supplier Tempur-Pedic (NYSE: TPX) has completed its  offering of $375 million aggregate principal amount of 6.875% senior notes due 2020.      

The notes are general unsecured senior obligations of Tempur-Pedic and are guaranteed on a senior unsecured basis by certain of Tempur-Pedic's subsidiaries. The notes will pay interest semi-annually on June 15 and Dec. 15 of each year beginning June 15.  The notes will mature Dec. 15, 2020.

Net proceeds of this offering will be approximately $366 million after payment of offering and other related expenses. Tempur-Pedic expects to use the net proceeds of the offering, together with cash on hand and borrowings under new senior secured credit facilities entered into by Tempur-Pedic, to finance the purchase of Sealy Corp. (NYSE: ZZ) and to pay related fees and expenses. The total proceeds from the sale of the notes were placed in escrow pending release upon receipt of regulatory approvals and the satisfaction of other conditions to the completion of the Sealy acquisition.