Tempur-Pedic Outlines Debt Retirement Plan

March 25, 2013  by in UnCategorized   

By Home Furnishings Business in Bedding on March 26, 2013

Tempur-Pedic International  (NYSE: TPX) has provided an update on paying off the debt it incurred to acquire Sealy Corp. 

Sealy's $235 million aggregate principal amount of 10.875 percent of  senior secured notes due 2016 have been called for redemption and will be redeemed in full April 15. Sealy's $268.9 million aggregate principal amount of 8.25 percent senior subordinated notes due 2014 have been called for redemption and will be redeemed in full April 22.

With respect to the 8 percent senior secured third lien convertible notes due 2016, the Sealy Convertible Notes are now convertible only into cash, in an amount that adjusts during the Make-Whole Period, and then becomes fixed thereafter.  The Make-Whole Period effectively expires on April 12. 

As of the close of business Monday March 25, holders of about $183 million in accreted principal amount of Sealy Convertible Notes had converted into cash, representing approximately 80 percent of all the Sealy Convertible Notes outstanding at the closing of the acquisition. 

Holders of Sealy Convertible Notes who converted March 19, received about $2,325.43 per $1,000 accreted principal amount of Sealy Convertible Notes being converted. The amount that a holder will receive upon conversion will decline slightly every day during the Make-Whole Period, and holders of Sealy Convertible Notes who convert after April 12, will receive $2,200 per $1,000 accreted principal amount of Sealy Convertible Notes being converted.