This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration. Need a new registration confirmation email? Click here
May 16, 2013 /PRNewswire/ -- Tempur-Pedic International Inc. (NYSE: TPX), the world's largest bedding provider, today announced that it completed the repricing and reduction of its existing
$870.0 million senior secured term B facility. The repricing replaces the Company's existing senior secured term B facility with a new senior secured term B facility ("term B facility") with an outstanding principal balance of
$867.8 million. Immediately following the repricing, the Company made a voluntary prepayment of
$125.0 million, lowering the principal amount outstanding on the term B facility to
$742.8 million. The voluntary prepayment was funded from a drawing made under the Company's revolving credit facility and from cash on hand obtained from the release of funds previously escrowed to provide for the conversion and discharge of certain notes under the 8% Sealy Notes indenture which were not tendered. In addition, the repricing reduces the current interest rates on the term B facility by 150 basis points. The repricing was effected through an amendment to the Company's existing credit agreement. The amendment reduces the applicable margin for LIBOR on the term B facility to 2.75% from 4.0% and reduces the LIBOR floor for the term B facility to 0.75% from 1.0%.
Dale Williams, Executive Vice President and Chief Financial Officer commented, "This repricing further improves the Company's capital structure and is expected to reduce our annual cash interest costs by more than
$10 million. We are committed to reducing our debt and this repricing will provide the Company with additional cash flow flexibility to do so."
About the Company
Tempur-Pedic International Inc. (NYSE: TPX) is the world's largest bedding provider. Tempur-Pedic International develops, manufactures and markets mattresses, foundations, pillows and other products. The Company's brand portfolio includes many of the most highly recognized brands in the industry, including Tempur®, Tempur-Pedic®, Sealy®, Sealy Posturepedic®, Optimum
™ and Stearns & Foster®. World headquarters for Tempur-Pedic International is in
Lexington, KY. The Company intends to change its corporate name to Tempur Sealy International, Inc. and is seeking stockholder approval for the proposed name change at its Annual Meeting of Stockholders in
May 2013. For more information, visit
http://www.sealy.com, or call 800-805-3635.
This release contains "forward-looking statements," within the meaning of federal securities laws, which include information concerning one or more of the Company's plans, objectives, goals, strategies, and other information that is not historical information. When used in this release, the words "estimates," "expects," "anticipates," "projects," "plans," "proposed," "intends," "believes," 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 cash interest costs. All forward looking statements 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.