Tempur Sealy International amended its $850 million revolving and term loan senior secured credit facilities.

The amended senior secured credit facilities include a $425 million revolving credit facility and a $425 million term loan facility. The proceeds of the revolving and term loan facilities will be used to refinance Tempur Sealy’s existing credit facilities and for general corporate purposes.

The amended credit facilities have an accordion feature that permits incremental borrowings of at least $550 million and potentially substantially more based on a specified secured leverage ratio and certain other conditions.

“We are pleased to announce the refinancing, which reflects our success in strengthening our global competitive position, our successful expansion into direct to consumer business and recent market share gains in North America. The new facility decreases our borrowing costs, provides increased operating flexibility and significantly extends our debt maturities,” said Tempur Sealy Chairman and CEO Scott Thompson.

“We truly appreciate the 12 different world class banks who elected to participate in the financing and demonstrated their enthusiastic support for Tempur Sealy by substantially over-subscribing the deal.”

According to a related 8-K filing, JPMorgan Chase served as administrative agent for the transaction. JPMorgan, Bank of America Securities, Wells Fargo Securities and Fifth Third bank served as lead arrangers and joint bookrunners.

Thompson added, “This transaction represents the lowest interest rate spread on a like for like leverage in the company’s history.”
Tempur Sealy International develops, manufactures, and markets mattresses, foundations, pillows and other products.