Davis Polk advised Merrill Lynch, Pierce, Fenner & Smith Incorporated as sole lead arranger and bookrunner in connection with $1.77 billion of financing provided to Tempur-Pedic International Inc. for its acquisition of Sealy Corporation, which closed on March 18, 2013. The financing consists of $1.07 billion in senior secured term loan facilities, a $350 million senior secured revolving credit facility and a $350 million senior unsecured bridge facility.
Based in Lexington, Kentucky, Tempur-Pedic is a leading manufacturer, marketer and distributor of premium mattresses and pillows, which it sells in approximately 80 countries under the TEMPUR and Tempur-Pedic brands. Sealy is a leading bedding manufacturer in the United States that manufactures and markets a complete line of bedding products, including mattresses and mattress foundations, under the Sealy, Sealy Posturepedic, Stearns & Foster and Bassett brand names.
The Davis Polk financing team included partner Jason Kyrwood, associates Meyer C. Dworkin and Samantha Hait and law clerk Loren A. Crary. The capital markets team included partner Michael Kaplan and associates Jonathan C. Pentzien and Alexa Taylor. Partner Lucy W. Farr and associate Arie Rubenstein provided tax advice. Counsel Loyti Cheng and associate Kevin J. Klesh provided environmental advice. Associate Steve Sorkin and law clerk Gregory A. Goldman provided real estate advice. Associate Bruce Rose-Innes provided intellectual property advice. Partner Arthur J. Burke provided antitrust and competition advice. Associate Jessica Neidhart Agostinho provided ERISA advice. Counsel Jeanine P. McGuinness provided OFAC advice. Sonya Jackman was the legal assistant on this transaction. Members of the Davis Polk team are based in the New York and Washington DC offices.
