Tempur-Pedic Provides Update on Retirement of Sealy Debt
LEXINGTON, Ky., March 26, 2013
LEXINGTON, Ky., March 26, 2013 /PRNewswire/ --Tempur-Pedic International Inc.
("Tempur-Pedic" or the "Company") (NYSE: TPX), the world's largest bedding
provider, provided an update on the retirement of various debt financings of
Sealy Corporation ("Sealy") as a result of the completion of the acquisition
of Sealy on March 18, 2013.
Sealy's $235,000,000 aggregate principal amount of 10.875% Senior Secured
Notes due 2016 have been called for redemption and will be redeemed in full on
April 15, 2013. Sealy's $268,945,000 aggregate principal amount of 8.25%
Senior Subordinated Notes due 2014 have been called for redemption and will be
redeemed in full on April 22, 2013.
With respect to the 8% Senior Secured Third Lien Convertible Notes due 2016
(the "Sealy Convertible Notes"), the Sealy Convertible Notes are now
convertible only into cash, in an amount that adjusts during the Make-Whole
Period (as defined under the Supplemental Indenture governing the Sealy
Convertible Notes), and then becomes fixed thereafter. The Make-Whole Period
effectively expires on April 12, 2013.
As of the close of business on March 25, 2013, holders of approximately
$183,050,982 in Accreted Principal Amount of Sealy Convertible Notes had
converted into cash, representing approximately 80% of all the Sealy
Convertible Notes outstanding at the closing of the Sealy acquisition.
Holders of Sealy Convertible Notes who converted on March 19, 2013 received
approximately $2,325.43 per $1,000 Accreted Principal Amount of Sealy
Convertible Notes being converted. The amount that a holder will receive upon
conversion will decline slightly every day during the Make-Whole Period, and
holders of Sealy Convertible Notes who convert after April 12, 2013 will
receive only $2,200 per $1,000 Accreted Principal Amount of Sealy Convertible
Notes being converted.
Pursuant to the terms of the Second Supplemental Indenture for the Sealy
Convertible Notes, as described in the Company's Current Report on Form 8-K
filed on March 18, 2013, all material negative covenants (apart from the lien
covenant and related collateral requirements) have been eliminated from the
Supplemental Indenture governing the Sealy Convertible Notes, as well as
certain events of default and certain other provisions. In addition, the
Company and its non-Sealy subsidiaries will not provide any guarantees of any
obligations with respect to the Sealy Convertible Notes. The Sealy Convertible
Notes have been delisted from the New York Stock Exchange and the registration
of the Sealy Convertible Notes under the Securities Exchange Act of 1934, as
amended, will be terminated. The Company also expects that various rating
agencies will stop providing ratings with respect to the Sealy Convertible
Notes. All of the foregoing could have a material adverse impact on the
trading market and liquidity of the Sealy Convertible Notes.
About Tempur-Pedic International
Tempur-Pedic International Inc. (NYSE: TPX) is the world's largest bedding
provider. The Company intends to change its corporate name to Tempur Sealy
International, Inc. and will seek stockholder approval for the proposed name
change at its Annual Meeting of Stockholders in May 2013. Tempur-Pedic
International Inc. develops, manufactures and markets mattresses, foundations,
pillows and other products. The Company's brand portfolio includes many of
the most highly recognized brands in the industry, including Tempur®,
Tempur-Pedic®, Sealy®, Sealy Posturepedic®, Optimum™ and Stearns & Foster®.
World headquarters for Tempur-Pedic International Inc. is in Lexington, KY.
For more information, visit http://www.tempurpedic.com, http://www.sealy.com,
or call 800-805-3635.
This release contains "forward-looking statements," within the meaning of
federal securities laws, which include information concerning one or more of
the Company'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," "proposed,"
"intends," "believes," and variations of such words or similar expressions are
intended to identify forward-looking statements. These forward-looking
statements include statements relating to the retirement and deregistration of
Sealy debt. All forward looking statements are based upon current
expectations and beliefs and various assumptions. There can be no assurance
that the Company will realize these expectations or that these beliefs will
Numerous factors, many of which are beyond the Company's control, could cause
actual results to differ materially from those expressed as forward-looking
statements. These risk factors include the risks and uncertainties discussed
in the Company's filings with the Securities and Exchange Commission,
including without limitation the Company's Annual Report on Form 10-K under
the headings "Special Note Regarding Forward-Looking Statements" and "Risk
Factors." Any forward-looking statement speaks only as of the date on which
it is made, and the Company undertakes no 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 Tempur-Pedic International Inc.
Contact: Investor Contact: Mark Rupe, Vice President, Tempur-Pedic
International Inc., 800-805-3635, email@example.com; Media
Contacts: Michael Geller, Edelman for Tempur-Pedic International Inc., +1 212
729 2163, Mike.Geller@edelman.com; or Trevor Gibbons, Edelman for Tempur-Pedic
International Inc., +1 212 704 8166, Trevor.Gibbons@edelman.com
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