Tempur-Pedic to redeem Sealy notes; holders convert 80% of 8¼% notes

By Tali David

Minneapolis, March 26 - Tempur-Pedic International Inc. provided an update on the retirement of Sealy Corp.'s 10 7/8% senior secured notes due 2016, 8¼% senior subordinated notes due 2014 and the conversion of its 8¼% senior subordinated notes due 2014 as a result of the completion of the acquisition of Sealy on March 18, according to a press release.

The company said it will redeem all $235 million of its outstanding 10 7/8% senior secured notes on April 15.

Sealy's $268,945,000 of 8¼% senior subordinated notes will be redeemed in full on April 22.

With respect to the 8% senior secured third-lien convertible notes, the notes are now convertible only into cash, in an amount that adjusts during the make-whole period and then becomes fixed thereafter. The make-whole period effectively expires on April 12.

As of the close of business on March 25, holders of about $183,050,982 in accreted principal amount of the convertibles had converted into cash, representing about 80% of all the convertibles outstanding at the closing of the acquisition, the release said.

Holders of convertibles who converted on March 19 received about $2,325.43 per $1,000 accreted principal amount of convertibles being converted.

Tempur-Pedic and Sealy are mattress manufacturers based in Lexington, Ky., and Trinity, N.C., respectively.

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