Tempur Sealy Secures $1.1B Credit Line

April 8, 2016  by in Financial Reports, Industry   

The $1.1 billion senior secured credit facilities include a $500 million revolving credit facility, a $500 million term loan facility and $100 million delayed draw term loan facility. The proceeds of the revolving and term loan facilities will be used to refinance Tempur Sealy's existing credit facilities and the proceeds of the delayed draw term loan facility will be used to support the repayment of Tempur Sealy's 8 percent Sealy Notes due July 2016. 

The company also reported that during the first quarter of 2016 the it purchased 1.73 million shares of its common stock at an average price of $57.71 for a total cost of $100 million. 

"We are pleased to announce this refinancing, which lowers our borrowing costs, extends debt maturities, and provides the company with increased flexibility to manage its capital structure,” said Scott Thompson, chairman and CEO. “We appreciate the very strong support we received from the financial community with 14 different banks participating.”