LEXINGTON, Ky., May 14, 2020 /PRNewswire/ -- Tempur Sealy
International, Inc. (NYSE: TPX, "Company") announced today that it
has successfully obtained an incremental borrowing of $200 million.
The Company entered into an incremental 364-day $200 million term loan (the "364-Day Loan")
among several banks and other financial institutions, including
JPMorgan Chase Bank, N.A., as administrative agent. The additional
financing provided under the 364-Day Loan enhances the Company's
liquidity during the unprecedented global impact of COVID-19. The
Company intends to use the proceeds of the 364-Day Loan to repay
borrowings under its existing $425
million revolving credit facility thus providing increased
capacity under its current line of credit. The Company's existing
credit agreement (the "Credit Agreement") was amended to
accommodate the 364-Day Loan. Although no financial covenants were
amended, the Company has agreed under the amendment to the Credit
Agreement to certain additional restrictive provisions, including
limitations on the Company's ability to repurchase shares and make
certain investments for the duration of the 364-Day Loan. The
364-Day Loan may be prepaid with no penalty at any time, at which
point all terms revert to those of the original Credit Agreement,
including the Company's ability to repurchase shares and make
certain investments.
"We believe that our previous liquidity position was adequate
based on current and expected market
conditions," said Tempur Sealy Chairman and
CEO Scott Thompson. "However, given the future uncertainty of
the COVID-19 crisis, we worked with our commercial bank group to
proactively secure the 364-Day Loan. Our bid to borrow the
additional $200 million was
over-subscribed by 50%. The over-subscription speaks to the banking
community's confidence in Tempur Sealy and its ability as a
worldwide leader in the manufacturing and marketing of bedding
products to address the current crisis and possibly emerge in an
even stronger competitive position within the industry."
Additional details regarding the 364-Day Loan will be available
in Tempur Sealy's Current Report on Form 8-K to be filed with the
Securities and Exchange Commission.
Forward-Looking Statements
This press release may be
deemed to include statements that are "forward-looking" within the
meaning of the 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 "intends",
"believes" and variations of such words or similar expressions are
intended to identify such statements. Any forward-looking
statements contained herein 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
prove correct.
Other potential risk factors include the risk factors discussed
under the heading "Risk Factors" in Part I, ITEM 1A of the
Company's Annual Report on Form 10-K for the year
ended December 31, 2019 and in Part II, ITEM 1A of the
Company's Quarterly Report on Form 10-Q for the quarter ended
March 31, 2020. There may be other
factors that may cause actual results to differ materially from the
forward-looking statements contained herein. The Company undertakes
no obligation to update any forward-looking statement contained
herein to reflect events or circumstances after the date on which
such statement is made.
About the Company
Tempur Sealy International, Inc.
(NYSE: TPX) develops, manufactures, and markets mattresses,
foundations, pillows and other products. The Company's
products are sold worldwide through third party retailers, its own
stores, and online. The Company's brand portfolio includes many
highly recognized brands in the industry, including Tempur®,
Tempur-Pedic®, Sealy® featuring Posturepedic® Technology, and
Stearns & Foster®. World headquarters for Tempur Sealy
International is in Lexington, KY.
For more information, visit http://www.tempursealy.com or
call 800-805-3635.
Investor Relations Contact
Aubrey Moore
Investor Relations
Tempur Sealy International, Inc.
800-805-3635
Investor.relations@temp ursealy.com
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SOURCE Tempur Sealy International, Inc.