Sealy plans new $100 million asset-based revolving credit facility

By Sara Rosenberg

New York, May 13 - Sealy Corp. is looking to get a new $100 million asset-based revolving credit facility due in 2013 as part of a comprehensive refinancing plan, according to a news release.

Under the plan, the company would also issue about $350 million of senior secured notes due 2016 and about $177 million senior secured convertible PIK notes due 2016.

Proceeds from the transactions will be used to refinance the company's existing senior secured credit facility.

Successful completion of the revolver and the notes are all conditioned upon each other.

"After an extensive review of our alternatives, we believe that this recapitalization plan is the right approach because it would accomplish several key objectives: recapitalizing the company for the long term, putting in place a capital structure that is flexible enough to weather a downturn, permitting the company to grow when the economic environment improves, and treating all of our stockholders fairly," said Larry Rogers, chief executive officer and president, in the release.

Sealy is a Trinity, N.C.-based bedding manufacturer.

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