Tempur-Pedic to redeem 10¼% notes due 2010

By Jennifer Chiou

New York, Nov. 27 - Tempur-Pedic International Inc. announced the redemption of its $97.5 million of 10¼% senior subordinated notes due 2010.

The company plans to redeem the notes at 108% plus accrued interest on Dec. 29.

Tempur-Pedic said it expects to fund the redemption primarily with borrowings under its U.S. revolving credit facility.

"As a result of this transaction, we anticipate significant interest savings. In addition, this transaction will eliminate the subordinated debt's restrictive provisions, which have been a limiting factor on corporate initiatives, including share repurchases," president and chief executive officer H. Thomas Bryant said in a news release.

Tempur-Pedic is a Lexington, Ky.-based manufacturer, marketer and distributor of viscoelastic mattresses and pillows.

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