Simmons to obtain bank and bond financing as part of LBO

By Sara Rosenberg

New York, Nov. 18 - Simmons Co. is expected to obtain a new credit facility and issue high-yield bonds to help support the company's acquisition by Thomas H. Lee Partners, chairman and chief executive officer Charlie Eitel and senior management from Fenway Partners.

Goldman Sachs and UBS Securities are the joint lead arrangers and co-syndication agents on the bank deal, with Goldman listed on the left and acting as sole bookrunner. Deutsche Bank also will be involved in the bank financing and will receive an agent title, according to sources.

Goldman Sachs is also on the left for the bond deal, with UBS and Deutsche acting as joint bookrunners.

Sizes of the bank and bond financing have not yet been determined, sources said.

The transaction, which is expected to close before year end and is subject to usual conditions, values the company at $1.1 billion, according to a company news release. Fenway, which acquired Simmons in October 1998 from Investcorp for about $513 million, will retain a 10% stake in the company once the transaction closes.

Goldman Sachs, UBS and Wachovia were the sell-side merger and acquisition advisers to Simmons and Fenway. Ropes & Gray LLP advised Simmons and Fenway, and Weil, Gotshal & Manges LLP advised Thomas H. Lee in the transaction.

Simmons is an Atlanta-based manufacturer and distributor of branded bedding products.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.