S&P lowers Serta Simmons

S&P said it lowered its ratings on Serta Simmons Bedding LLC’s issuer rating to CCC- from CCC, the $200 million first-out super-priority bank loan due Aug. 10, 2023 to B- from B, the $851 million second-out super-priority bank loan due Aug. 10, 2023, moved to CCC+ from B- and the $1.95 billion floating-rate first-lien term bank loan due Nov. 8, 2023, moved to C from CC. The recovery ratings on the first two loans remain 1 and the recovery rating on the first-lien loan remains 6.

Serta Simmons’ capital structure matures in 2023. “We believe a default, bankruptcy filing, distressed debt exchange, or debt restructuring is likely within the next six months because of its sizable maturities and weak operating performance,” S&P said in a press release.

S&P noted Serta Simmons has a track record of restructuring, the most recent in 2020.

The outlook remains negative.

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