New Issue: Sealy Mattress prices downsized $390 million 10-year notes to yield 8¼%

By Paul A. Harris

St. Louis, March 30 - Sealy Mattress Co. priced a downsized issue of $390 million of 10-year senior subordinated notes (Caa1/B-) Tuesday at par to yield 8¼%, according to a market source.

Price talk was 8¼% to 8½%.

Goldman Sachs & Co. and JP Morgan ran the books on the Rule 144A/Regulation S issue.

Proceeds will be used to support 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.

Issuer:	Sealy Mattress Co.
Amount:	$390 million, decreased from $490 million
Maturity:	June 15, 2014
Security description:	Senior subordinated notes
Bookrunners:	Goldman Sachs & Co., JP Morgan
Coupon:	8¼%
Price:	Par
Yield:	8¼%
Spread:	438 basis points
Call features:	Callable after June 15, 2009 at 104.125, 102.75, 101.375, par on or after June 15, 2012
Equity clawback:	Until June 15, 2007 for 40% at 108.25
Pricing date:	March 30
Settlement date:	April 6
Ratings:	Moody's: Caa1
	Standard & Poor's: B-
Price talk:	8¼%-8½%

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