S&P rates Serta Simmons loans B, CCC+

S&P said it affirmed its ratings, including its B corporate credit rating, on Serta Simmons Bedding LLC.

The outlook is stable.

"The ratings affirmation reflects our belief that Serta Simmons will be able to gradually deleverage following the refinancing and leveraged dividend transaction," S&P credit analyst Bea Chiem said in a news release.

The agency also assigned its B issue-level rating and 3 recovery rating to the company's proposed $1.9 billion first-lien term loan due 2023, indicating expectations for meaningful (50% to 70%) recovery in the event of a payment default at the lower end of the range.

In addition, S&P assigned its CCC+ issue-level and 6 recovery ratings to the company's proposed $500 million second-lien term loan due 2024, indicating expectations for negligible (0% to 10%) recovery in the event of a payment default.

The borrowers under the proposed credit facilities are Serta Simmons Bedding LLC, National Bedding Co. LLC, and SSB Manufacturing Co.

Proceeds, along with about $140 million in cash from the balance sheet, will be used to refinance the company's outstanding $1.8 billion term loan B and senior notes, pay $670 million in extraordinary dividends to shareholders and cover breakage costs on the notes and fees and expenses.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.