Moody's rates National Bedding loans B1, B3

Moody's Investors Service assigned a B1 rating to National Bedding Co. LLC's new $410 million first-lien secured credit facilities (comprised of a $50 million revolver and a $360 million term loan) and a B3 rating to its proposed $160 million second-lien term loan.

In addition, Moody's assigned B1 rating corporate family rating to Serta.

The outlook is stable.

The rating action reflects the company's raised risk profile given a significant increase in leverage to support the $830 million buyout by affiliates of Ares Management LLC and Teachers' Private Capital.

Proceeds from the two credit facilities will fund the acquisition of Serta and the refinancing of its existing debt (plus related transaction fees). The $50 million revolver is expected to be substantially undrawn at closing. If the transaction is completed as proposed, Moody's will withdraw its ratings on Serta's existing senior secured credit facilities.

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