Market Snapshot
  • U.S.
  • Europe
  • Asia
Ticker Volume Price Price Delta
DJIA 16,424.85 162.29 1.00%
S&P 500 1,862.31 19.33 1.05%
NASDAQ 4,086.22 52.06 1.29%
Ticker Volume Price Price Delta
STOXX 50 3,132.95 -6.31 -0.20%
FTSE 100 6,571.78 -12.39 -0.19%
DAX 9,307.64 -10.18 -0.11%
Ticker Volume Price Price Delta
NIKKEI 14,417.53 -0.15 -0.00%
TOPIX 1,166.59 0.04 0.00%
HANG SENG 22,760.24 64.23 0.28%

Sealy Corporation Mails Notice Of Make-Whole Event



              Sealy Corporation Mails Notice Of Make-Whole Event

PR Newswire

TRINITY, N.C., March 1, 2013

TRINITY, N.C., March 1, 2013 /PRNewswire/ -- Sealy Corporation (NYSE: ZZ)
("Sealy"), a leading global bedding manufacturer, announced today that it
delivered the required notice to holders of Sealy and Sealy Mattress Company
8% Senior Secured Third Lien Convertible Notes due 2016 (CUSIP No.  812139400)
(the "Notes")  pursuant to Section 10.05 of the Supplemental Indenture, dated
as of July 10, 2009, by and among Sealy, Sealy Mattress Company (collectively
with Sealy, the "Co-Issuers"), the Guarantors named on the signature pages
thereto, and The Bank of New York Mellon Trust Company, N.A., as Trustee and
as Collateral Agent (as defined in the Supplemental Indenture), supplementing
the Indenture, dated as of July 10, 2009, among Sealy Mattress Company, the
Guarantors (as defined therein) and the Trustee (as may be amended or
supplemented, together with the Supplemental Indenture, the "Indenture"),
pursuant to which the Notes were issued.

On September 26, 2012, Sealy entered into an Agreement and Plan of Merger (the
"Merger Agreement") with Tempur-Pedic International Inc. ("Tempur-Pedic") and
Silver Lightning Merger Company, a subsidiary of Tempur-Pedic ("Sub").  In
accordance with the Merger Agreement, on the Effective Date (as defined
below), Sub will merge with and into Sealy, after which the separate corporate
existence of Sub will cease and Sealy will continue as a surviving subsidiary
of Tempur-Pedic (the "Merger"). 

As more fully described in the notice to holders, the consummation of the
Merger will constitute a "Make-Whole Event" under clause (2) of the definition
thereof in the Indenture.  As previously publicly disclosed, the Merger is
subject to the satisfaction or waiver of the conditions set forth in the
Merger Agreement, including the receipt of regulatory approvals, and based on
the assumption that regulatory approvals are received on or before March 8,
2013 and that all of the other conditions in the Merger Agreement will be
satisfied, the anticipated effective date of the Make-Whole Event is expected
to be on or after March 15, 2013 (the "Effective Date"). 

To the extent that the Effective Date occurs on or prior to the maturity date
of the Notes, if holders elect to convert their Notes at any time following
the Effective Date and prior to the date the Co-Issuers' designate as the date
on which they will repurchase the Notes, upon any holder's request, following
the occurrence of a fundamental change to be specified in a related notice
circulated in connection with the Effective Date (the "the Make-Whole
Period"), the conversion price applicable to each Note that is surrendered for
conversion during the Make-Whole Period will be reduced (the "Conversion
Price").

The reduced Conversion Price will be determined by reference to the table set
forth in Section 10.05 of the Indenture and will be based on the date of
conversion and an Applicable Price (as defined in the Indenture) of $2.20 per
share based on consideration of $2.20 per share payable to holders of shares
of common stock of Sealy under the Merger Agreement.  After the Co-Issuers
have determined the definitive Effective Date, the Co-Issuers will notify each
Holder and the Trustee of such Effective Date and the amounts by which the
Conversion Price of the Notes has been reduced.

While the parties expect that the Merger may be consummated as early as March
15, 2013, the Merger is subject to certain closing conditions, including the
receipt of regulatory approvals, and there can be no assurance that the
required conditions will be satisfied or waived by such date, or at all.

About Sealy

Sealy owns one of the largest bedding brands in the world, with sales of $1.3
billion in fiscal 2012. The company manufactures and markets a broad range of
mattresses and foundations under the Sealy®, Sealy Posturepedic®, Sealy
Embody™, Optimum™ by Sealy Posturepedic®, Stearns & Foster®, and Bassett®
brands. Sealy operates 25 plants in North America, and has the largest market
share and highest consumer awareness of any bedding brand on the continent. In
the United States, Sealy sells its products to approximately 3,000 customers
with more than 11,000 retail outlets. Sealy is also a leading supplier to the
hospitality industry. For more information, please visit www.sealy.com.

Forward-looking Statements

This release contains "forward-looking statements," within the meaning of
federal securities laws, which include information concerning one or more of
Tempur-Pedic's or Sealy's plans, objectives, goals, strategies, and other
information that is not historical information. When used in this release, the
words "estimates," "expects," "anticipates," "projects," "plans," "intends,"
"believes," and variations of such words or similar expressions are intended
to identify forward-looking statements. These forward-looking statements
include, without limitation, statements relating to Tempur-Pedic's or Sealy's
expectations regarding the opportunities and strengths of the combined
company, anticipated cost and revenue synergies, the strategic rationale for
the combination, including expectations regarding product offerings, growth
opportunities, value creation, and financial strength, and the timing of the
closing. All forward looking statements are based upon current expectations
and beliefs and various assumptions. There can be no assurance that
Tempur-Pedic or Sealy will realize these expectations or that these beliefs
will prove correct.

There are a number of risks and uncertainties that could cause actual results
to differ materially from the forward-looking statements contained in this
release. Numerous factors, many of which are beyond Tempur-Pedic's or Sealy's
control, could cause actual results to differ materially from those expressed
as forward-looking statements. These risk factors include the ability of the
parties to complete the proposed merger in a timely manner or at all;
satisfaction of the conditions precedent to the proposed merger, including the
ability to secure regulatory approvals; the possibility of litigation
(including relating to the merger itself); successful completion of
acquisition financing arrangements; the ability to successfully integrate
Sealy into Tempur-Pedic's operations and realize synergies from the proposed
transaction; general economic, financial and industry conditions, particularly
in the retail sector, as well as consumer confidence and the availability of
consumer financing; uncertainties arising from global events; the effects of
changes in foreign exchange rates on the combined company's reported earnings;
consumer acceptance of the combined company's products; industry competition;
the efficiency and effectiveness of the combined company's advertising
campaigns and other marketing programs; the combined company's ability to
increase sales productivity within existing retail accounts and to further
penetrate the combined company's domestic retail channel, including the timing
of opening or expanding within large retail accounts; the combined company's
ability to address issues in certain underperforming international markets;
the combined company's ability to continuously improve and expand its product
line, maintain efficient, timely and cost-effective production and delivery of
its products, and manage its growth; changes in foreign tax rates, including
the ability to utilize tax loss carry forwards; rising commodity costs; and
the effect of future legislative, regulatory or tax changes. Additional
information concerning these and other risks and uncertainties are discussed
in each of the companies' respective filings with the Securities and Exchange
Commission, including without limitation our Notice of Written Consent and
Appraisal Rights and Information Statement under the heading "Cautionary
Statement Concerning Forward-Looking Information" and annual reports on Form
10-K under the headings "Special Note Regarding Forward-Looking Statements"
and/or "Risk Factors." Any forward-looking statement speaks only as of the
date on which it is made, and neither Sealy nor Sealy undertakes any
obligation to update any forward-looking statements for any reason, including
to reflect events or circumstances after the date on which such statements are
made or to reflect the occurrence of anticipated or unanticipated events or
circumstances.

SOURCE Sealy Corporation

Website: http://www.sealy.com
Contact: Mark D. Boehmer, VP & Treasurer, Sealy Corporation, +1-336-862-8705
Sponsored Links
Advertisement
Advertisements
Sponsored Links
Advertisement