LEXINGTON, Ky., Dec. 19, 2012 /PRNewswire/ -- Tempur-Pedic International Inc. (NYSE: TPX), a leading manufacturer, marketer and distributor of premium mattresses and pillows worldwide, today announced that it completed its previously announced offering of $375 million aggregate principal amount of 6.875% senior notes due 2020 (the "Notes"), issued at par.
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 December 15 of each year beginning on June 15, 2013. The notes will mature on December 15, 2020.
The 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 acquisition of Sealy Corporation 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.
The Notes were sold in a private offering only to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the "Securities Act"), and to certain non-U.S. persons in accordance with Regulation S under the Securities Act. The Notes will not be registered under the Securities Act or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from such registration requirements.This announcement is neither an offer to sell nor a solicitation of an offer to buy the Notes or any other securities and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale is unlawful.