AOT Bedding to sell $725 million of high-yield bonds

By Paul A. Harris and Sara Rosenberg

Portland, Ore., Aug. 29 - AOT Bedding Super Holdings plans to sell $725 million of high-yield bonds to help fund the acquisition of the company by Advent International, according to market sources.

Goldman Sachs & Co. will be the lead bookrunner.

Debt financing for the acquisition also includes a proposed $1.46 billion credit facility, which is scheduled to launch at a bank meeting on Sept. 6.

Morgan Stanley Senior Funding Inc. and Goldman Sachs are the lead banks on the credit facility, with Morgan Stanley the left lead.

Under the agreement, mattress manufacturer AOT, the parent company of Hoffman Estates, Ill.-based National Bedding Co. and Atlanta-based Simmons Bedding Co., is being purchased from Ares Management LLC and the Ontario Teachers' Pension Plan.

However, Ares and Ontario Teachers' will retain a significant equity stake in the company.

Closing is expected in the fourth quarter, subject to conditions.

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