Mattress Firm to launch $730 million incremental term loan on Thursday

By Sara Rosenberg

New York, Jan. 13 – Mattress Firm Holding Corp. is scheduled to hold a bank meeting on Thursday to launch a $730 million incremental first-lien term loan, according to a market source.

Additionally, the company is seeking a $200 million amended and extended ABL revolver, the source said.

Barclays is the lead left bookrunner on the deal.

Commitments are due at noon ET on Jan. 28, the source added.

Proceeds will be used to help fund the acquisition of HMK Mattress Holdings LLC, the holding company of Sleepy’s and related entities, for $780 million, subject to working capital and other customary adjustments.

Other funds for the transaction will come from cash on hand.

The company previously said that, pro forma for the transaction, leverage will be around 4 times.

Closing is expected on Feb. 3, subject to customary conditions, including regulatory approvals.

Mattress Firm is a Houston-based mattress retailer. Sleepy’s is a Hicksville, N.Y.-based mattress retailer.

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