– Expects to use Term Loan B proceeds to
fund the expected acquisition of Mattress Firm
– Aligns availability period of Delayed
Draw Term A Loan commitments
LEXINGTON, Ky., Oct. 25,
2024 /PRNewswire/ -- Tempur Sealy International,
Inc. (NYSE: TPX, "Company" or "Tempur Sealy") today announced that
it has successfully closed on a 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. The Company also amended its
2023 Credit Agreement to reflect this new Term Loan B and extend
the availability period of $605
million of the Company's Delayed Draw Term A commitments
that closed earlier this year.
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 consideration for the previously announced
acquisition of Mattress Firm Group Inc. ("Mattress Firm"). The
proceeds from the Term Loan B were funded into escrow and are to be
released concurrently with the closing of the Mattress Firm
acquisition.
Tempur Sealy Chairman and CEO Scott
Thompson commented, "We appreciate the strong support behind
this financing from the debt market. With this step, we have
obtained the financing necessary to fund the proposed acquisition
of Mattress Firm."
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 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 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 and the factors discussed in the Company's
Annual Report on Form 10-K for the year ended December 31, 2023 and Quarterly Report on Form
10-Q for the quarter ended June 30,
2024. 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.
