Sealy $100 million asset-based revolver led by JPMorgan, Citigroup, GE

By Sara Rosenberg

New York, May 14 - Sealy Corp.'s proposed $100 million asset-based revolving credit facility is being led by joint lead arrangers and joint bookrunners JPMorgan, Citigroup and GE Capital, with JPMorgan the administrative agent, according to an 8-K filed with the Securities and Exchange Commission on Thursday.

Covenants include a minimum fixed-charge coverage ratio if excess availability is less than the greater of 15% of the commitments and $15 million for two consecutive days.

Proceeds from the four-year deal will be used to refinance the company's existing senior secured credit facility.

Other funds for the refinancing will come from the sale of about $350 million of senior secured notes due 2016 and about $177 million of senior secured convertible PIK notes due 2016.

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

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

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