S&P: No change to Serta, Simmons

Standard & Poor's said its ratings and outlooks on Serta International Holdco LLC and Simmons Bedding Co. are unchanged by Advent International's announcement that it will purchase a majority stake in Serta's and Simmons' parent, AOT Bedding Super Holdings, in a transaction valued at about $3 billion.

Existing owners Ares and Ontario Teachers' Pension Plan will retain minority stakes after the leveraged buyout.

Details of the financing have not yet been announced, but S&P said it estimates that leverage will increase well beyond existing levels at each company.

S&P said it believes it is likely that the existing debt outstanding will be repaid at both entities following the acquisition given change in control provisions. However, the agency said it would continue to evaluate any impact on the ratings as more details emerge, including at which entity or entities the debt will be issued to finance the acquisition.

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