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Tempur-Pedic Reprices Loan
By Home Furnishings Business in Bedding on May 20, 2013
Tempur-Pedic International (NYSE: TPX) has completed the repricing and reduction of its existing $870 million senior secured loan.
The repricing replaces the company's existing term B loan with a new senior secured term loan with an outstanding principal balance of $867.8 million. Immediately following the repricing, Tempur-Pedic made a prepayment of $125 million, lowering the principal amount outstanding on the loan to $742.8 million.
The prepayment was funded from a drawing made under the company's revolving credit line and from cash on hand obtained from the release of previously escrowed funds from the Sealy acquisition.
"This repricing further improves the company's capital structure and is expected to reduce our annual cash interest costs by more than $10 million," said Dale Williams, executive vice president and CFO. "We are committed to reducing our debt and this repricing will provide the Company with additional cash flow flexibility to do so."