Serta Simmons accelerates deadline for $2.4 billion loans to Wednesday

By Paul A. Harris

Portland, Ore., Oct. 17 – Serta Simmons Holdings LLC accelerated timing on $2.4 billion of term loans now in the market, according to a market source.

Commitments are now due at 5 p.m. ET on Wednesday. Prior to the acceleration, the deadline had been Thursday.

Price talk on its $1.9 billion seven-year first-lien term B and $500 million eight-year second-lien term loan remain unchanged.

The first-lien term loan is talked at Libor plus 350 basis points to 375 bps with a 1% Libor floor and an original issue discount of 99.5, and the second-lien term loan is talked at Libor plus 800 bps to 825 bps with a 1% Libor floor and a discount of 98.5, the source said.

The first-lien term loan includes 101 soft call protection for six months, and the second-lien term loan has call protection of 102 in year one and 101 in year two.

Amortization on the first-lien term loan is 1% per annum.

UBS Investment Bank and Goldman Sachs Bank USA are the bookrunners on the deal, with UBS left lead on the term loan B and Goldman left lead on the second-lien loan.

The company’s $2,625,000,000 credit facility also provides for a $225 million ABL revolver.

Proceeds will be used to refinance existing debt and pay a dividend.

Advent International is the sponsor.

Serta Simmons is an Atlanta-based manufacturer and distributor of mattresses.

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