Tempur Sealy (TPX) Stock Higher After Completing Notes Repayment

Tempur Sealy (TPX) stock is advancing on Monday after the company announced this morning that it completed a $115 million repayment of notes due in 2016.
By Natalie Walters ,

NEW YORK (TheStreet) -- Shares of Tempur Sealy (TPX) - Get Report are up 0.25% to $59.59 Monday afternoon, as the company announced earlier today the conversion or repayment of all remaining 8% senior secured third lien convertible notes due in 2016.

The notes were issued by Sealy Corporation and Sealy Mattress Company and matured on July 15.

The Lexington, KY-based mattress maker borrowed $100 million to complete the repayment of approximately $115 million in cash to Sealy Notes holders who had converted their notes ahead of July 15. 

"As part of our overall 2016 capital structure plan, our 8% notes maturity was funded from our new senior credit facilities, resulting in approximately $6 million in annual interest savings based on today's interest rates," Scott Thompson, Tempur Sealy CEO, said in a statement.

Tempur Sealy will release its financial results for the fiscal 2016 second quarter ended June 30 before the market opens on July 28. 

Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:

We rate TEMPUR SEALY INTL INC as a Buy with a ratings score of B-. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its expanding profit margins, growth in earnings per share, notable return on equity and increase in net income. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.

You can view the full analysis from the report here: TPX

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