Mattress Firm Enters Into Up To $225 Million Credit Agreement

Furniture World News Desk on 12/26/2017

Mattress Firm Inc., America's largest specialty mattress retailer, announced that it entered into a new up to $225 million senior secured asset-based revolving credit facility (the "ABL Facility"). This new revolving credit facility will be available for working capital needs and other general corporate purposes. The ABL Facility has an initial aggregate principal availability amount of $75 million. The Company intends to upsize the facility via an incremental availability feature to a total aggregate principal amount of up to $225 million.

"This new credit facility provides independent liquidity and capital to support our strategy, and demonstrates the strength of our business, the value of our assets and the quality of our brands," stated Ken Murphy, Mattress Firm's president and CEO. "Over the past year we have made multiple strategic investments that position us to build on our long-term vision to become the largest U.S. vertically integrated mattress retailer. These investments included accelerating our national rebranding to the Mattress Firm banner, adjusting our merchandise offering to offer better value to consumers, and improving our organizational structure. With these initiatives behind us we are excited about the long-term profitable growth opportunities for our business."

Barclays acted as administrative agent, sole book runner and sole lead arranger on the ABL Facility. Sidley Austin LLP acted as legal counsel to Mattress Firm in connection with the financing. Paul Hastings LLP acted as legal counsel to Barclays in connection with the financing.

About Mattress Firm: Founded in 1986, Houston-based Mattress Firm is the nation's first and only border-to-border, coast-to-coast specialty bedding retailer. With approximately $3.3 billion in revenue generated annually through over 3,300 stores across 49 states and multiple online sites, Mattress Firm offers a broad selection of mattresses and bedding accessories from leading manufacturers and brand names, including Serta, Simmons, Dream Bed, tulo, Sleepy's and Hampton & Rhodes. In 2016, Mattress Firm was acquired by Steinhoff International Holdings N.V. and currently operates as a subsidiary of Steinhoff.