Sealy Mattress downsizes to $390 million, price talk 81/4-8½%, to price Tuesday

By Paul A. Harris

St. Louis, March 29 - Price talk of 8¼% to 8½% emerged Monday on Sealy Mattress Co.'s offering of 10-year senior subordinated notes (Caa1/B-), which was downsized to $390 million from $490 million, according to an informed source.

The deal is expected to price on Tuesday.

Goldman Sachs & Co. and JP Morgan are joint bookrunners on the Rule 144A/Regulation S offering.

The $100 million amount by which the bond deal was decreased was shifted to the company's new credit facility, according to the source.

The notes will come with five years of call protection.

Proceeds will be used to help fund the acquisition of 92% of Sealy Corp. by Kohlberg Kravis Roberts & Co.

The issuer is a direct subsidiary of High Point, N.C., bedding manufacturer Sealy Corp.

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