– Expects to use Term Loan B proceeds to
fund the proposed acquisition of Mattress Firm
LEXINGTON, Ky., Oct. 4, 2024
/PRNewswire/ -- Tempur Sealy International, Inc. (NYSE: TPX,
"Company" or "Tempur Sealy") today announced that it has
successfully priced its previously announced senior secured Term
Loan B facility in an aggregate principal amount of $1.6 billion (the "Term Loan B"). The Term Loan B
will mature seven years after the date of closing of the Term Loan
B, which is expected to occur in the next few weeks. The Term Loan
B priced at SOFR + 250 bps with an OID of 99.5.
Tempur Sealy intends to use the proceeds from the Term Loan B,
together with cash available and proceeds from other debt, solely
to fund the cash required for the previously announced acquisition
of Mattress Firm Group Inc. ("Mattress Firm"). The Term Loan B will
close and fund into escrow with the proceeds to be released
concurrently with the closing of the Mattress Firm acquisition.
Forward-Looking Statements
This press release contains statements that may be characterized
as "forward-looking" within the meaning of the federal securities
laws. Such statements might include information concerning one or
more of the Company's plans, guidance, objectives, goals,
strategies, and other information that is not historical
information. When used in this release, the words "will,"
"targets," "expects," "anticipates," "plans," "proposed,"
"intends," and variations of such words or similar expressions are
intended to identify forward-looking statements. These
forward-looking statements include, without limitation, statements
relating to the Company's expectations regarding the closing of the
Term Loan B on the terms indicated and the use of proceeds thereof,
as well as the expected Mattress Firm acquisition, including the
outcome of the pending litigation with the FTC, expectations
regarding post-closing supply agreements, future performance,
integration of acquired companies with our business and the ability
of the Company to close the Mattress Firm acquisition on the
timeline indicated or at all. Any forward-looking statements
contained herein are based upon current expectations and beliefs
and various assumptions. There can be no assurance that the Company
will realize these expectations or that these beliefs will prove
correct.
Numerous factors, many of which are beyond the Company's
control, could cause actual results to differ materially from any
that may be expressed herein as forward-looking statements. These
potential risks include risks associated with receipt of regulatory
approvals and satisfaction of closing conditions prior to
consummation of the acquisition, Mattress Firm's ongoing
operations; the ability to successfully integrate Mattress Firm
into Tempur Sealy's operations and realize synergies from the
transaction; the possibility that the expected benefits of the
acquisition are not realized when expected or at all; general
economic, financial and industry conditions, particularly
conditions relating to the financial performance and related credit
issues present in the retail sector, as well as consumer confidence
and the availability of consumer financing; the impact of the
macroeconomic environment in both the U.S. and internationally on
Mattress Firm and the Company; uncertainties arising from national
and global events; industry competition; the effects of
consolidation of retailers on revenues and costs; and consumer
acceptance and changes in demand for Mattress Firm's and the
Company's products the factors discussed in the Company's Annual
Report on Form 10-K for the year ended December 31, 2023. There may be other factors
that may cause the Company's actual results to differ materially
from the forward-looking statements. The Company undertakes no
obligation to update any forward-looking statement to reflect
events or circumstances after the date on which such statement is
made.
About Tempur Sealy International, Inc.
Tempur Sealy is committed to improving the sleep of more people,
every night, all around the world. As a leading designer,
manufacturer, distributor and retailer of bedding products
worldwide, 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 popular non-branded offerings consist
of value-focused private label and OEM products. At Tempur Sealy we
understand the importance of meeting our customers wherever and
however they want to shop and have developed a powerful
omni-channel retail strategy. Our products allow for complementary
merchandising strategies and are sold through third-party
retailers, our over 750 Company-owned stores worldwide and our
e-commerce channels. With the range of our offerings and variety of
purchasing options, we are dedicated to continuing to turn our
mission to improve the sleep of more people, every night, all
around the world into a reality.
Importantly, we are committed to carrying out our global
responsibility to protect the environment and the communities in
which we operate. As part of that commitment, we have established
the goal of achieving carbon neutrality for our global wholly owned
operations by 2040.
Tempur Sealy 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.
