Tempur-Pedic International announced that it completed the repricing and reduction of its existing $870 million senior secured term B facility. The repricing replaces the company’s existing senior secured term B facility with a new senior secured term B facility with an outstanding principal balance of $867.8 million, with Bank of America serving as administrative agent. Barclays Bank, JPMorgan Chase, Wells Fargo and Fifth Third Bank also participated in the repricing.
Immediately following the repricing, the company made a voluntary prepayment of $125 million, lowering the principal amount outstanding on the term B facility to $742.8 million. The voluntary prepayment was funded from a drawing made under the company’s revolving credit facility and from cash on hand obtained from the release of funds previously escrowed.
Dale Williams, executive vice president and chief financial officer commented, “This repricing further improves the company’s capital structure and is expected to reduce our annual cash interest costs by more than $10 million. We are committed to reducing our debt and this repricing will provide the company with additional cash-flow flexibility to do so.”