Sealy Corporation Announces Intention to Redeem $35 million of Senior Secured Notes
TRINITY, N.C., Feb. 1 /PRNewswire-FirstCall/ -- Sealy Corporation (NYSE: ZZ), the largest bedding manufacturer in the world, today announced its intention to redeem 10%, or $35 million, of its $350 million aggregate principal amount of 10.875% senior secured notes due April 15, 2016. Pursuant to the terms of the notes, the redemption price will equal 103.00% of the principal amount of the notes, plus accrued and unpaid interest to the redemption date. Such redemption is anticipated to occur during the second quarter of fiscal 2010, upon formal notice to note holders.
"We are pleased to announce our intention to redeem 10% of our outstanding senior secured notes, consistent with our strategic initiative of using the Company's strong free cash flow generation to delever our balance sheet, and representative of the Company's significantly improved financial position and liquidity. The resulting reduction in our long-term indebtedness and annual interest expense will enable us to make greater investments in the growth and cost-efficiency of our business, while driving increased value for our shareholders," stated Jeff Ackerman, Sealy's Executive Vice President and Chief Financial Officer.
In addition, an updated investor presentation for the Company's Q4 2009 results will be posted on Monday, February 1, 2010, to the Investors section of the Company's website at www.sealy.com.
Sealy is the largest bedding manufacturer in the world with sales of $1.3 billion in fiscal 2009. The Company manufactures and markets a broad range of mattresses and foundations under the Sealy(R), Sealy Posturepedic(R), including SpringFree(TM), PurEmbrace(TM) and TrueForm(R); Stearns & Foster(R), and Bassett(R) 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 7,000 retail outlets. Sealy is also a leading supplier to the hospitality industry. For more information, please visit www.sealy.com.
This document contains forward-looking statements within the meaning of the safe harbor provisions of the Securities Litigation Reform Act of 1995. Terms such as "expect," "believe," "continue," and "grow," as well as similar comments, are forward-looking in nature. Although the Company believes its growth plans are based upon reasonable assumptions, it can give no assurances that such expectations can be attained. Factors that could cause actual results to differ materially from the Company's expectations include: general business and economic conditions, competitive factors, raw materials purchasing, and fluctuations in demand. Please refer to the Company's Securities and Exchange Commission filings for further information.
SOURCE Sealy Corporation