Sleepy's launches $170 million term loan at Libor plus 600 bps

By Sara Rosenberg

New York, Feb. 28 - Sleepy's Intermediate LLC launched a $170 million seven-year first-lien term loan on Tuesday with price talk of Libor plus 600 basis points with a 1.25% Libor floor and an original issue discount of 98, according to a market source.

The loan includes 101 soft call protection for one year.

Credit Suisse Securities (USA) LLC is the lead bank on the deal.

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

Ratings are expected in the low single-B's, the source added.

Commitments are due on March 13.

Sleepy's is a specialty mattress retailer owned by the Acker family, and with this transaction, Calera Capital is making a significant minority equity investment in the company.

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