Tempur Sealy to price $500 million 10-year notes in Thursday drive-by; yield whispered at 5½%

By Paul A. Harris

Portland, Ore., May 19 – Tempur Sealy International, Inc. plans to price a $500 million offering of 10-year senior notes in a drive-by deal on Thursday, according to market sources.

Early guidance has the deal coming to yield 5½%, a trader said.

J.P. Morgan Securities LLC, BofA Merrill Lynch, Wells Fargo Securities LLC, Fifth Third and Goldman Sachs & Co. are managing the Rule 144A and Regulation S notes sale.

The notes come with five years of call protection.

The Lexington, Ky.-based bedding provider plans to use the proceeds to redeem all $375 million of its 6 7/8% senior notes due 2020, with any remaining proceeds for general corporate purposes, which may include stock repurchases. Pending such uses, proceeds will be used to temporarily reduce revolver borrowings or be put into short-term investments.

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