Tempur Sealy International, the renowned mattress maker, has announced the successful completion of its $1.65 billion senior secured credit facilities. These funds will be utilized to refinance the company's existing facilities, allowing for greater financial flexibility and growth opportunities.
Enhanced Refinancing Options
As part of this refinancing initiative, Tempur Sealy has secured a $1.15 billion revolving credit facility dedicated to refinancing purposes. Additionally, a $500 million term loan facility has been established for general corporate purposes. This strategic move provides the company with increased access to capital while maintaining a consistent cost of funds.
Flexible Borrowing Opportunities
One notable feature of these senior secured facilities is the inclusion of an accordion feature. This feature allows for incremental borrowings of up to $850 million, with the potential for further increases based on compliance with specified secured leverage ratios and other predetermined conditions. This flexibility provides Tempur Sealy with additional borrowing capacity to support future growth.
Long-Term Debt Maturities
The successful completion of this refinancing endeavor enables Tempur Sealy to extend its debt maturities significantly. By doing so, the company demonstrates its commitment to long-term financial stability and sustainability.