Mattress Firm, Victory Capital free to trade; Halyard Health term loan B revisions emerge

By Sara Rosenberg

New York, Oct. 1 – Mattress Firm Holding Corp.’s credit facility surfaced in the secondary market on Wednesday with the term loan seen trading above its original issue discount, and Victory Capital Management broke, too.

Switching to the primary market, Halyard Health Inc. reduced pricing on its term loan B and modified the ticking fee.

Mattress Firm’s credit facility freed up for trading on Wednesday, with the $720 million seven-year covenant-light term loan (B1/B) quoted at 99¼ bid, 99¾ offered and then it moved up to 99 3/8 bid, 99 7/8 offered, according to a trader.

Pricing on the term loan is Libor plus 425 basis points with a step-down after six months to Libor plus 400 bps when net total leverage is 3 times and a 1% Libor floor. The debt was sold at an original issue discount of 99 and has 101 soft call protection for one year.

Earlier this week, the spread on the term loan firmed at the high end of the Libor plus 400 bps to 425 bps talk, the step-down was added, the call protection was extended from six months and the 18 month MFN sunset provision was removed.

The company’s $845 million credit facility also includes a $125 million five-year ABL revolver.

Proceeds from Mattress Firm’s credit facility will be used to fund the $425 million acquisition of Sleep Train Inc., a Rocklin, Calif.-based bedding specialty retailer, finance bolt-on acquisitions and refinance existing debt.

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