S&P puts Mattress Firm on positive watch

S&P said it placed the ratings on Mattress Firm Holding Corp. on CreditWatch with positive implications.

The CreditWatch listing follows news that the company signed a definitive agreement to be acquired in an all-debt transaction by the Steinhoff International Holdings NV, which is looking to enter the U.S. market, the agency said.

The transaction will create a global multi-brand mattress retail distribution network with geographical diversification through its presence on five continents, S&P said.

The financing plans consist of about $1.8 billion in bridge loans and $2 billion of term loans, the agency said. The transaction is expected to close by the end of September, S&P added.

The watch listing will be resolved once the agency said it assesses the financial impact of the transaction on Mattress Firm and any potential benefits from the ownership of Steinhoff.

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